A.M. Best Affirms Ratings of Kansas City Life Insurance Company and Its Subsidiaries
|Business Wire, Inc.|
The ratings of Kansas City Life reflect its solid risk-adjusted capital position and favorable trends in statutory and GAAP operating profitability that have been primarily driven by the company’s core universal and traditional life insurance and fixed annuity lines of business. In addition, the ratings consider the company’s diversified product portfolio and multi-channel distribution platform.
Partially offsetting these positive rating factors is Kansas City Life’s general decline in capital and surplus over the past five years driven by stockholder dividends, and more recently, a material increase in its pension liability due to the low interest rate environment. However, Kansas City Life realized a
The revised outlook for Old American recognizes the decline in its absolute and risk-adjusted capital position in recent periods due to modest stockholder dividends and a change in the accounting treatment of its deferred tax asset. While the company has demonstrated favorable premium growth trends, recent operating results have been impacted by heightened benefit claims and higher expenses associated with the increased level of sales.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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