A.M. Best Upgrades Credit Ratings of Lewer Life Insurance Company
The ratings reflect Lewer Life’s balance sheet strength, which
The rating upgrades reflect Lewer Life’s long-established niche of more than 25 years in the student health insurance marketplace, favorable operating results and strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio. Lewer Life generates the majority of its net premium revenue from reinsuring international student insurance business, which is underwritten by two carriers and marketed and administered by its affiliate,
Lewer Life has reported increased levels of profitability over the past two years as it strategically exited from its relationship with a single carrier and negotiated an arrangement with two carriers offering Affordable Care Act-exempt products, which somewhat mitigate concentration and regulatory risks. Net income has been the primary contributor to capital growth over the past two years. In addition, the company has been extended a sizable line of credit and has no outstanding balance. However, the absolute level of capital and surplus remains modest, the company remains very dependent on its reinsurance relationships and the vast majority of premium revenue was received from two ceding companies. Furthermore, Lewer Life’s future expansion potential may be challenged as the number of international students in
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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