A.M. Best Upgrades Credit Ratings of Citizens Security Life Insurance Company
The ratings reflect Citizens Security’s balance sheet strength, which
The rating upgrades reflect Citizen Security’s favorable risk-adjusted capital position, positive earnings trends over the past several years and maintaining an established niche market position. Citizens Security’s level of risk-adjusted capital has generally improved over the last five years, supported by consistent profitability over that period. Additionally, the company operates in a unique market providing individual dental and other ancillary health products to a niche segment of the senior population.
Offsetting rating factors include a lack of product and geographic diversification, as the vast majority of the company’s net premium is derived from the dental line of business, and over one-half is derived from five states. Additionally, several acquisitions of medical management companies in recent years by its parent holding company, Citizens Financial, have resulted in increased financial leverage at the parent holding company. As a result, Citizens Security’s capital and surplus growth has been limited due to dividend requirements to service the debt and build the holding company’s cash position.
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 © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171213006156/en/
Financial Analyst
[email protected]
or
Director
[email protected]
or
Manager, Public Relations
[email protected]
or
Director, Public Relations
[email protected]
Source:
A.M. Best Affirms Credit Ratings of Houston Casualty Group Members and Affiliates
A.M. Best Places Credit Ratings of Mountain Life Insurance Company Under Review with Negative Implications
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News