AM Best Upgrades Credit Ratings of Assurant, Inc. and Its Property/Casualty Subsidiaries; Affirms Credit Ratings of Its Life/Health Subsidiaries
AM Best has upgraded the Financial Strength Rating (FSR) to A+ (Superior) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long Term ICR) to “aa-” (Superior) from “a+” (Excellent) of the
Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) of Assurant’s credit and life/health (L/H) subsidiaries:
The ratings of Assurant P&C’s reflect balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
The rating upgrades of Assurant P&C reflect an improved assessment of the group’s balance sheet strength, which is currently assessed at very strong and is supported by risk-adjusted capitalization at the strongest level. This enhanced view of balance sheet strength also considers the group’s very strong earnings power, strong positive cash flows and new capital formation–the majority of which is derived from low-risk businesses, with limited volatility. Assurant’s property catastrophe exposure, which stems mostly from its lender placed homeowners’ business in global housing, is well-managed and adequately reinsured. Assurant’s operating performance has also benefited from earnings diversification and management’s strategy to partner with market leaders. As a result, Assurant P&C consistently outperformed its peers and generated superior returns on capital.
The ratings of Assurant Lifestyle reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate ERM. Assurant Lifestyle also receives one level of rating enhancement from its affiliate, Assurant P&C, as it is considered important to the Assurant brand as a licensed credit life and credit accident & health insurer business.
The FSR has been upgraded to A+ (Superior) from A (Excellent) and the Long-Term ICRs to “aa-” (Superior) from “a+” (Excellent) with outlooks revised to stable from positive for the following P/C subsidiaries of Assurant, Inc.:
-
American Bankers Insurance Company of Florida -
American Security Insurance Company -
Standard Guaranty Insurance Company -
Caribbean American Property Insurance Company -
Voyager Indemnity Insurance Company -
Virginia Surety Company, Inc. -
Reliable Lloyds Insurance Company
The following Short-Term IR has been upgraded:
Assurant, Inc.—
-- to AMB-1+ (Strongest) from AMB-1 (Outstanding) on commercial paper
The following Long-Term IRs have been upgraded, with outlooks revised to stable from positive:
Assurant, Inc.—
-- to “a-” (Excellent) from “bbb+” (Good) on
-- to “a-” (Excellent) from “bbb+” (Good) on
-- to “a-” (Excellent) from “bbb+” (Good) on
-- to “a-” (Excellent) from “bbb+” (Good) on
-- to “bbb+” (Good) from “bbb” (Good) on
-- to “bbb+” (Good) from “bbb” (Good) on
The following indicative Long-Term IRs on securities available under the shelf registration have been upgraded, with outlooks revised to stable from positive:
Assurant, Inc.—
-- to “a-” (Excellent) from “bbb+” (Good) on senior unsecured
-- to “bbb+” (Good) from “bbb” (Good) on subordinated debt
-- to “bbb” (Good) from “bbb-” (Good) on preferred stock
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
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Source: AM Best
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