A.M. Best Revises Issuer Credit Rating Outlook to Positive for Guarantee Trust Life Insurance Company

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” of Guarantee Trust Life Insurance Company (GTL) (Glenview, IL). The Credit Rating (rating) outlook for the FSR remains stable.

The revised Long-Term ICR outlook reflects GTL’s strong risk-adjusted capitalization levels, its position as a niche player in the senior market and trend of favorable operating gains. GTL’s risk-adjusted capitalization has strengthened over the medium term through the accretion of growing net operating results in nearly all lines of business and was augmented by a steady stream of growing net investment income. The company has exhibited strong core competencies marketing products aimed at the senior market space. Net earnings have been favorable and reflect its operating performance over the long term in its core agency accident & health (A&H) business segment. A.M. Best expects GTL to continue demonstrating organic earnings growth with its focused plan to introduce new products and expand its business profile while maintaining favorable underwriting results and stable investment performance.

Conversely, offsetting rating factors include a disruption of its distribution channels and degree of premium concentration in A&H insurance coverage. The company’s decision to terminate its largest producer has resulted in a loss of premium; however, there is favorable progress in growing premium through the introduction of new innovative supplemental and life products. A.M. Best expects the company to continue executing its business strategy of premium growth and refining operating efficiencies.

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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best

Wayne Kaminski, +1 908 439 2200, ext. 5061

Senior Financial Analyst

wayne.kaminski@ambest.com

or

Sally Rosen, +1 908 439 2200, ext. 5280

Senior Director

sally.rosen@ambest.com

or

Christopher Sharkey, +1 908 439 2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

or

Jim Peavy, +1 908 439 2200, ext. 5644

Director, Public Relations

james.peavy@ambest.com