SECURITY LIFE OF DENVER INSURANCE COMPANY CLAIMS PAYING ABILITY RATED 'AAA'
SECURITY LIFE OF DENVER INSURANCE COMPANY CLAIMS PAYING ABILITY RATED 'AAA' CHICAGO, Feb. 6 /PRNewswire/ -- Duff & Phelps Credit Rating Co. today rated the claims paying ability of Security Life of Denver Insurance Company (Security Life) 'AAA' (Triple-A). The rating considers the reasonable level of operating leverage employed by the company and its very high quality investment portfolio. The rating reflects the support provided by Security Life's immediate parent, Nationale-Nederlanden U.S. Holdings, Inc. (NNUS) as well as the financial strength of its ultimate parent, Internationale-Nederlanden Groep, N.V. (ING). ING, headquartered in Amsterdam, has major activities in insurance, banking and investment services. ING's insurance group ranks as the 16th largest insurance organization in the world in terms of assets. At Dec. 31, 1991, Security Life had admitted assets of $1,717 million and adjusted surplus of approximately $281 million, including surplus relief of approximately $77 million (after tax) provided by affiliate Life Insurance Company of Georgia, also rated 'AAA' (Triple-A). Security Life has been a rapidly growing insurance company. 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 three major markets: the corporate market; the estate planning market; and the key business person 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 700 general agencies and 1,400 agents. Statutory strain from rapid growth has been essentially offset by surplus relief reinsurance, allowing for a positive, yet low statutory return on surplus. The company has generated a 2.8 percent average return on adjusted surplus over the five years ended Dec. 31, 1991. At Dec. 31, 1991, operating leverage (adjusted liabilities-to-adjusted surplus) was 5.1 times (including surplus relief). We expect operating leverage to increase at a modest pace over the next several years, but to be maintained at a reasonable level. Security Life's invested assets are of very high quality. Only 4 percent of invested assets are in mortgages and real estate. Problem mortgages are minimal. Policy loans with floating rates represent 29 percent of invested assets, and bonds represent about 55 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- 2/6/92 /CONTACT: Kevin A. Ceurvorst, CFA of Duff & Phelps, 312-368-3144/ CO: Security Life of Denver Insurance Company ST: Colorado IN: INS SU: RTG
JT -- NY086 -- 7841 02/06/92 15:27 EST
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|Date:||Feb 6, 1992|
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