The ratings reflect CSI’s excellent risk-adjusted capitalization, consistently profitable performance, strong balance sheet liquidity and very conservative underwriting leverage, as well as the benefits made available through its ultimate parent,
These positive rating factors are offset by CSI’s elevated investment leverage and near-term execution risk and strain to earnings brought on by the upfront costs and investment associated with new lines of business. CSI has migrated to other products and services and currently writes more non-credit insurance premiums compared with its long-standing credit insurance business.
The rating affirmations of CSI Life reflect its synergies with CSI, as the company commenced writing direct sales of Medicare Supplement insurance in 2014. The ratings also reflect the strong risk-adjusted capitalization, the explicit support provided by its parent, CSI, as well as the benefits made available through its ultimate parent, Berkshire. CSI Life’s in-force book of business relates to assumed life business written in conjunction with certain credit card disability, involuntary unemployment and family leave insurance issued by CSI. Offsetting rating factors include CSI Life’s limited business profile, lack of product diversification and the competitive Medicare Supplement market place.
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
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Director, Public Relations