The ratings reflect
Partially offsetting these positive rating attributes is
Key rating drivers that could produce a revision in the outlook or a downgrading of the ratings include capitalization that does not meet
In affirming Allstate Financial's ratings,
The current rating actions also reflect Allstate Financial's adequate levels of consolidated stand-alone risk-adjusted capitalization, as well as the improving performance of its fixed- income investment portfolio, which continues to experience declining levels of realized investment losses and is currently in a large net unrealized gain position. Additionally, the affirmation of the ratings recognizes Allstate Financial's positive and diversified GAAP operating performance and improving levels of statutory earnings that have benefited from the group's strategy to focus on growing its core protection and workplace supplemental health products while continuing to de-emphasize its spread-based products.
Offsetting these positive rating factors are the challenges Allstate Financial faces to sustain and improve its overall operating performance, which remains modest relative to
The ratings of First Colonial are based on its solid risk- adjusted capitalization and explicit and implicit support provided by
Positive rating actions could occur if there is a sustainable long-term improvement in First Colonial's operating performance and loss reserve development trends. However, any material negative deviation in terms of earnings, capitalization or risk profile could result in downward pressure on the ratings and/or a revised outlook.
For a complete listing of
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of
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