AM Best Removes From Under Review With Positive Implications and Upgrades Credit Ratings of ShelterPoint Insurance Company and ShelterPoint Life Insurance Company

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings to “a” (Excellent) from “a-” (Excellent) of ShelterPoint Insurance Company (West Palm Beach, FL) and ShelterPoint Life Insurance Company (Garden City, NY). These companies are collectively referred to as ShelterPoint Life. The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect ShelterPoint Life’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The rating upgrades reflect ShelterPoint Life’s continued success in the Paid Family Leave and Short-Term Disability lines of business. Capitalization remains within the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). ShelterPoint Life’s operating performance has exhibited significant growth in top line premium, driven by its solid foothold as the market leader in Paid Family Leave and Short-Term Disability coverage in New York State. Operating earnings remained strong despite expected regulatory changes to targeted loss ratios. In addition, the company is expected to benefit from the financial backing of its parent, Protective Life Corporation (Protective Life), a U.S. subsidiary of Dai-ichi Life Holdings, Inc.

ShelterPoint Life’s business profile has also expanded as it begins entering new geographic markets whenever opportunities arise. Expertise from Protective Life is expected to help increase ShelterPoint Life’s scale of operations into new markets. The company’s flexibility and ability to pivot, as well as management’s execution of the overall strategy has led to strong earnings on an operating and net basis. Overall, AM Best expects ShelterPoint Life’s balance sheet to remain very strong, driven by a conservative investment strategy, strong cash flows and sustained organic earnings.

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.