DUFF & PHELPS: THE VARIABLE ANNUITY LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY RATING REAFFIRMED AT 'AAA'
CHICAGO, Sept. 21 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the claims paying ability rating of The Variable Annuity Life Insurance Company (VALIC) at "AAA" (Triple-A). The rating reflects the company's high quality asset portfolio, strong market position in its core business, and the strength and support of its ultimate parent, American General Corporation. VALIC is a retirement annuity writer based in Houston with admitted assets of $18.8 billion and adjusted surplus of $843 million at June 30, 1993. The company is a wholly-owned subsidiary of American General Life Insurance Company (AGL), a traditional life insurer with total admitted assets of $4.9 billion and adjusted surplus of $1.3 billion at June 30, 1993. Duff & Phelps rates the claims paying ability of AGL "AAA" (Triple-A). The ultimate parent, American General Corporation, is a consumer financial services organization with $42.1 billion of total assets and $4.8 billion of shareholders' equity at quarter-end. Duff & Phelps upgraded the senior debt rating of American General Corporation from "AA-" (Double-A-Minus) to "AA" (Double-A) in July 1993. The rating action reflected the company's very strong and improved capitalization and interest coverage. VALIC specializes in marketing fixed and variable annuity products to employees of public and tax-exempt organizations. The company's primary business is to provide retirement annuity programs for group sponsored, not-for-profit employer organizations in primary/secondary education, higher education, and health care services. VALIC has the leading market share in the primary/secondary education area. The company also sells immediate annuities and single premium annuities. VALIC has a high quality, liquid investment portfolio consisting primarily of bonds and mortgage loans. Bond holdings represented 84 percent of total invested assets at June 30, 1993. Investment grade securities comprised 98 percent of the portfolio and publicly traded issues made up 83 percent. Mortgage loans represented 11 percent of total invested assets at quarter-end. VALIC's mortgage portfolio has significantly out-performed the life insurance industry averages. -0- 9/21/93 /CONTACT: Julie A. Burke, CPA of Duff & Phelps Credit Rating Co., 312-368-3158/
CO: The Variable Annuity Life Insurance Company ST: Illinois IN: INS FIN SU: RTG
TS -- NY041 -- 4147 09/21/93 12:04 EDT
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|Date:||Sep 21, 1993|
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