DUFF & PHELPS: INDIANAPOLIS LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY RATING REAFFIRMED AT 'AA'
CHICAGO, July 29 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the `AA' (Double-A) claims paying ability rating of Indianapolis Life Insurance Company (ILICO). The rating is supported by the company's ability to generate a relatively high return on average assets, the maintenance of an appropriate degree of operating leverage given the company's product mix, the use of strong underwriting skills, the very high quality of its invested assets, and the operating experience of the company's senior management. The relatively high level of skills and education of its career agency force is a key success factor for the company. These major strengths more than offset the business risks associated with the moderate size of ILICO and the company's newer product offerings and expansion efforts. ILICO is a mid-sized mutual life insurance company with admitted assets of $1.2 billion and adjusted surplus of $115 million as of March 31, 1993. The company has traditionally marketed participating whole life insurance and complementary products to middle and upper-middle income individuals, families and small businesses. Survivor whole life policies distributed through strategic alliance partners and conservatively priced single premium deferred annuity products are important new initiatives for the company. During 1992, ILICO's return on adjusted surplus was 7.7 percent. Operating leverage (adjusted liabilities to adjusted surplus) was 9.3 times at March 31, 1993. ILICO's invested assets are of very high quality. Bonds represented approximately 71 percent of total invested assets. Mortgages and real estate represented a below industry average combined 14 percent of invested assets at yearend 1992. Policy loans were 13 percent of yearend 1992 invested assets, while most of the remaining 2 percent of invested assets were in cash and equivalents. Less than investment grade bonds represented only 2.5 percent of the bond portfolio, all of which was investment grade when purchased. ILICO's mortgage portfolio emphasizes strong credit leases. Mortgage delinquencies and foreclosures have been minimal. Both bond and mortgage portfolios are well diversified. -0- 7/29/93 /CONTACT: Kevin A. Ceurvorst, CFA, of Duff & Phelps Credit Rating Company, 312-368-3144/
CO: Indianapolis Life Insurance Company ST: Indiana IN: INS SU: RTG
MP -- NY092 -- 7334 07/29/93 15:15 EDT
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|Date:||Jul 29, 1993|
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