The rating affirmations of ANICO are based on its strong level of consolidated risk-adjusted capitalization, growth in statutory capital and surplus, continued profitable earnings and diverse product offerings. ANICO benefits from revenue and income from diverse sources, which include its life/health and property/casualty affiliates.
Partially offsetting these positive rating factors are ANICO’s high exposure to interest-sensitive liabilities and the size of the annuity block relative to the life insurance block, as well as the challenges of optimizing its returns on a sustained basis.
The ratings of ANICO’s life insurance subsidiaries acknowledge their strong risk-adjusted capitalization and continuing contribution to ANICO’s consolidated results. Partially offsetting these positive rating factors are the life subsidiaries’ somewhat fluctuating premiums and earnings trends, more limited business profiles and the challenges to grow their business lines.
The ratings reflect solid risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio, generally favorable operating earnings and extensive market knowledge as a national writer. The ratings also reflect the continued support provided by the ultimate parent, ANICO, and the synergies generated amongst and between the groups and their parent. Partially offsetting these rating factors are the competitive market conditions, and the potential for significant catastrophic losses, however, somewhat mitigated by comprehensive reinsurance protection, which could have an impact on capitalization.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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Senior Financial Analyst-L/H
Manager, Public Relations
Senior Financial Analyst-P/C
Director, Public Relations