AM Best Affirms Credit Ratings of Fidelity Life Association, a Legal Reserve Life Insurance Company
The ratings reflect Fidelity Life’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
Fidelity Life’s risk-adjusted capitalization, as measured by the Best’s Capital Adequacy Ratio (BCAR), is forecasted to be at the strongest level over the near term, further driven by an initial public offering that raised gross proceeds of
AM Best considers the operating performance results to be adequate, as overall profitability has remained stable with material growth in life sales noted. There has been a continued trend in return on equity falling below the industry average, primarily driven by higher general insurance expenses, along with declining trends in net investment income due to the low interest rate environment. As the company deploys capital after completing its capital needs assessment, AM Best anticipates continued profitability and fairly strong premium growth at Fidelity Life.
This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Source: AM Best
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