DUFF & PHELPS: SECURITY LIFE OF DENVER INSURANCE COMPANY CLAIMS PAYING ABILITY RATING REAFFIRMED AT 'AAA'
CHICAGO, July 19 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the "AAA" (Triple-A) claims paying ability rating of Security Life of Denver Insurance Company (Security Life). The rating considers the reasonable level of operating leverage employed by the company, its demonstrated strength in chosen marketing channels, and its very high quality investment portfolio. The rating also reflects the support provided by Security Life's intermediate parent, ING North America Insurance Corporation, as well as the financial strength of its ultimate parent, Internationale-Nederlanden Groep N.V. (ING). ING is located in The Netherlands and ranks as one of the largest insurance groups and diversified financial services organizations in the world. At March 31, 1993, Security Life had admitted assets of $2,133 million. Products include primarily individual interest sensitive whole life and universal life insurance, individual term insurance, group life insurance (with carve-out plans for individual employees), GICs (reinsured by an NNUS affiliate) and life reinsurance. Security Life emphasizes four major markets: the corporate market; the estate planning market; the key business person market; and the traditional/family market Products are distributed through the M Financial Group, a group of high-volume personal producing general agents who have formed a common marketing organization, and a network of general agencies and agents. Security Life has been a rapidly growing insurance company. Statutory strain from rapid growth has been essentially offset by surplus relief reinsurance which has been provided by affiliate Life Insurance Company of Georgia. Statutory profitability, before surplus relief transactions, had been restrained due to the statutory strain. However, stronger profitability (before surplus relief) has begun to materialize. We expect this stronger profitability to support the paydown of the surplus relief beginning in 1994. At Dec. 31, 1992, operating leverage (adjusted liabilities-to-adjusted surplus) was 5.8 times including surplus relief (8.1 times excluding surplus relief). Operating leverage has been increasing at a modest pace over the past several years, but has been maintained at a reasonable level. Security Life's invested assets are of very high quality. As of year end 1992, only 9 percent of invested assets were in mortgages and real estate. Problem mortgages are minimal. Policy loans (most with floating rates) represented 27 percent of invested assets, and bonds represented about 56 percent of invested assets. The bond portfolio is of very high quality and is well diversified. Below investment grade issues are minor relative to the total bond portfolio. -0- 7/19/93 /CONTACT: Kevin A. Ceurvorst, CFA of Duff & Phelps Credit Rating Company, 312-368-3144/
CO: Security Life of Denver Insurance Company ST: Colorado IN: INS SU: RTG
TS -- NY059 -- 3074 07/19/93 12:57 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Jul 19, 1993|
|Previous Article:||DUFF & PHELPS: PAN-AMERICAN LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY RATED 'AA-'|
|Next Article:||DUFF & PHELPS: Life Insurance Company of Georgia, Southland Life Insurance Company Claims Paying Ability Ratings Reaffirmed at 'AAA'|