AM Best Affirms Credit Ratings of Insurance Subsidiaries of OneMain Holdings, Inc.

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Ratings of “bbb” (Good) of American Health and Life Insurance Company (AHLIC) (Fort Worth, TX) and Triton Insurance Company (Triton) (Fort Worth, TX). Both companies are wholly owned subsidiaries of OneMain Holdings, Inc. (OneMain) [NYSE: OMF]. The outlook of these Credit Ratings (ratings) is stable.

The ratings of AHLIC reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). AHLIC’s ratings also reflect drag from OneMain, a consumer finance company headquartered in Evansville, IN, which has substantial financial leverage. While OneMain exhibits an improved risk profile in recent years, the insurance companies are dependent on OneMain as a primary distribution source and both companies continue to have significant concentration in credit insurance products. AHLIC also provides term life insurance, which adds some diversity to its relatively narrow portfolio of products. AHLIC continues to maintain the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and generates consistent, favorable operating performance relative to peers and industry benchmarks.

The ratings of Triton reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate ERM, as well as drag from OneMain. Triton maintains the strongest level of risk-adjusted capitalization, as measured by BCAR. In addition, AM Best considers Triton’s future financial constraints in terms of dividends in the ratings, as these constraints may stress risk-adjusted capitalization needed to support growth. The company reports historically strong operating results, though significant volatility in premium volume and incurred losses occurred in 2020 due to the economic and financial impact of COVID-19 on the company’s main product, involuntary unemployment insurance.

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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Robert Valenta, CPCU

Senior Financial Analyst

+1 908 439 2200, ext. 5291

robert.valenta@ambest.com

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Kate Steffanelli
Associate Director

+1 908 439 2200, ext. 5063

kate.steffanelli@ambest.com

Jim Peavy
Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best