A.M. Best Affirms Credit Ratings of Protective Life Corporation and Its Key Subsidiaries; Upgrades Credit Ratings of Protective Property & Casualty Insurance Company
The ratings of Protective P&C reflect its balance sheet strength, which
Protective P&C specializes in providing coverage for extended vehicle service contracts and guaranteed asset protection products sold through independent dealers and franchise dealers. The company does business in all 50 states and in
The ratings of Protective P&C were upgraded based on a consistent record of strong profitable results. Protective P&C produced double digit pre-tax returns on revenue and surplus in nine of the past ten years, mainly due to profitable underwriting and investment returns on par with industry averages.
The ratings of Protective Life and its life subsidiaries continue to reflect its strong risk-adjusted capitalization, diversified and generally favorable operating results, along with manageable dividend requirements. Protective Life has a well-established core competency as an acquirer of life and annuity blocks of business and legal entities, which have contributed to organic earnings growth and allowed it to realize scale-related operating efficiencies. Operating return on equities are strong with acquisitions evidencing good underwriting discipline, and earnings growth has been supported by growth within its spread-based stable value program, along with relatively stable spreads within its annuity lines and the impact of tax reform. While Protective Life’s balance sheet has equity and interest rate risk embedded in its variable annuity book, it benefits from a comprehensive hedging program that has reduced the net amount at risk due to strong equity market performance in recent years.
These strengths are offset partially by a declining premium trend particularly within annuities as a result of industry-wide headwinds associated with implementation of the DOL ruling. Protective Life’s operating returns and risk-adjusted capital benefit from significant utilization of captive solutions for XXX and AXX reserves on a statutory basis, which qualitatively diminishes reported capitalization ratios. Although Protective Life maintains above-average financial and operating leverage when compared with similarly rated companies, metrics remain within the guidelines for its ratings.
For a complete listing of
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. For information on the proper media use of Best’s Credit Ratings and
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180328005684/en/
+1 908 439 2200, ext. 5802
[email protected]
or
+1 908 439 2200, ext. 5135
[email protected]
or
+1 908 439 2200, ext. 5159
[email protected]
or
+1 908 439 2200, ext. 5644
[email protected]
Source:
PCMI Named Top 10 Policy Administration Solution Providers 2018 by Insurance CIO Outlook
Voya Financial Launches Next Generation Critical Illness Insurance
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News