A.M. Best Affirms Ratings of EquiTrust Life Insurance Company
The affirmation reflects adequate levels of risk-adjusted capitalization, stable investment spreads and good asset-liability matching.
These strengths are partially offset by a somewhat narrow business profile concentrated primarily in fixed-indexed annuities with high interest sensitivity and an investment strategy that is differentiated from the U.S. life industry with overweight allocations to structured securities, short term investments (Schedule DA) and alternative assets (Schedule BA).
Factors that could result in a positive rating action include strengthening risk-adjusted capitalization ratios, continued diversification of premium growth in ordinary life and continued favorable trends of operating profitability. Factors that could lead to a negative rating action include higher allocations to riskier asset classes, declining levels of risk-adjusted capitalization due to operating losses, credit write-downs or high dividend payout ratios.
This press release relates to rating(s) that have been published on
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