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DUFF & PHELPS: SUN LIFE INSURANCE COMPANY OF AMERICA AND ANCHOR NATIONAL LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY RATINGS UPGRADED TO 'AA'

 CHICAGO, March 4 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has upgraded the claims paying ability rating of Sun Life Insurance Company of America (Sun Life) from AA-' (Double-A-Minus) to AA' (Double-A). Duff & Phelps has also upgraded the claims paying ability rating of Sun Life's wholly owned subsidiary, Anchor National Life Insurance Company (Anchor) from AA-'(Double-A-Minus) to AA' (Double-A). The rating actions reflect improved asset quality and stronger capitalization. Other factors supporting the rating are the companies' good profitability and low risk profile of new business.
 The ultimate parent of Sun Life and Anchor is SunAmerica Inc. (SunAmerica), formerly Broad Inc. Duff & Phelps rates SunAmerica Inc.'s senior debt at A' (Single-A) and preferred stock at A-' (Single-A- Minus). In addition, Duff & Phelps rates the preferred stock of SunAmerica Corporation at A' (Single-A). SunAmerica Corporation is a wholly owned subsidiary of SunAmerica and an intermediate holding company to Sun Life. Later this year, the company is expected to merge SunAmerica Inc. and SunAmerica Corporation.
 Sun Life is a stock life insurer based in Los Angeles and domiciled in Maryland with admitted assets of $5.7 billion and adjusted surplus of $565 million at Dec. 31, 1992. The company sells primarily investment oriented annuities and deposits through non-traditional life insurance distribution channels such as securities brokerage firms and financial planners. SunAmerica Corporation contributed net capital of $45 million to Sun Life in 1992 from capital raising efforts at the parent level. As a result, Sun Life's operating leverage improved significantly from 12.89 times at Dec. 31, 1991, to 9.02 times at year-end 1992.
 Anchor is a stock life insurer domiciled in California and a wholly owned subsidiary of Sun Life with admitted assets of $5.2 billion and adjusted surplus of $180 million at Dec. 31, 1992. Variable annuities are the dominant product sold by Anchor. Anchor earns a fee for managing and administering variable annuity contracts and the annuity holder incurs the investment risk. Operating leverage at Anchor also improved significantly from 11.58 times at Dec. 31, 1991, to 9.05 times at year-end 1992.
 On a consolidated basis, surplus exposure to below investment grade bonds fell from 147 percent at year-end 1991 to 85 percent at year-end 1992. During 1992, the companies sold $128 million of real estate related assets to the parent for cash. At Dec. 31, 1992, consolidated delinquent mortgage loans, loans foreclosed, and loans in process of foreclosure represented 3.98 percent of the mortgage portfolio. This ratio compares favorably to industry peers.
 -0- 3/4/93
 /CONTACT: Julie A. Burke, CPA of Duff & Phelps Credit Rating Co., 312-368-3158/


CO: Sun Life Insurance Co. of America; Anchor National Life
 Insurance Co. ST: California IN: INS SU: RTG


CK -- NY044 -- 2909 03/04/93 10:55 EST
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Publication:PR Newswire
Date:Mar 4, 1993
Words:463
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