A.M. Best Revises Issuer Credit Rating Outlook to Positive for Landmark Life Insurance Company
The Credit Ratings (ratings) reflect Landmark Life’s balance sheet strength, which
The company benefits from its strong balance sheet, which is mainly attributed to the very strong level of risk-adjusted capitalization, high quality of capital, and a conservative investment portfolio. Despite a low level of financial flexibility and the higher reinsurance leverage, Landmark Life has a favorable level of liquidity to meet its contractual obligations. There is a higher level of reinsurance dependence to support the new business strain, but the company’s goal is to ultimately retain 100% of the risk by 2020. The company has access to an external liquidity source, if needed, through its membership with the
Landmark Life has been consistently profitable in recent years, but with heavier reliance on its TPA fee income business, which is primarily reliant on a single insurance company client. Direct premium in its core ordinary life line have been flat to down in recent years, driven primarily by declining new business annualized premium. The decline in 2017 life sales was attributable to a termination of a less profitable tele-sales agency, while continuing to retain a higher percentage of profitable business.
Landmark Life is a stipulated premium life insurer with business mainly domiciled in
The revised Long-Term ICR outlook reflects a significant improvement in risk-adjusted capitalization in 2017, driven primarily by a
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
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