AM Best Assigns Credit Rating to Investors Preferred Life Insurance Company
AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-“ (Excellent) to Investors Preferred Life Insurance Company
Rapid City, SD – August 9, 2023 – Investors Preferred Life Insurance Company (“IPL”), a premier provider of private placement life insurance and annuities, announced that, on July 12, 2023, AM Best has assigned IPL a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-“ (Excellent). The outlook assigned to these Credit Ratings (ratings) is stable.
Founded in 2013, IPL is a bespoke carrier of private placement solutions for wealth preservation planning. The insurance company partners with advisors to create custom, tax-efficient strategies for their clients.
“The entire team at Investors Preferred is gratified to receive this assessment by AM Best,” said Nikki Pethtel, IPL’s President. “AM Best provides an informed, objective opinion of a rated company’s financial strength, demonstrating to agents, brokers, customers, prospects and the financial services industry that the insurer has undergone AM Best’s rigorous rating process.”
IPL’s suite of private placement life and annuity solutions are available to customers who meet the Internal Revenue Code’s definition of an Accredited Investor and Qualified Purchaser. Clients then incorporate these solutions into their estate, protection, and business plans.
“We have built our reputation by enhancing our clients’ legacies and it is rewarding to be recognized by AM Best,” said Alan Jahde, Chair & Co-Founder of IPL. “We designed our firm to be high-touch, because we're intentional about being an exceptional partner and offering unparalleled service.”
The press release from AM Best follows:
AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Investors Preferred Life Insurance Company (IPL) (Rapid City, SD). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect IPL’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
IPL’s risk-adjusted capitalization is at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s surplus has doubled over the past four years, and growth is modest from a dollar standpoint as the company looks to increase scale. There is limited asset risk on IPL’s balance sheet based on its private placement life insurance business model, which is focused on variable products and limited mortality risk as the company utilizes a group of highly rated reinsurers. There is regulatory risk associated with the tax benefits provided to IPL’s concentrated segment of high-net-worth individuals.
The stable outlooks reflect the company’s strong level of balance sheet strength with a growing surplus, consistently positive operating results using a fee-based model and its unique high net worth business model.
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.
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About Investors Preferred Life Insurance Company
Investors Preferred is a bespoke carrier of private placement solutions for wealth preservation planning. The firm partners with advisors to create custom, tax-efficient strategies for their clients. Its track record is indisputable, as it is consistently ranked one of the fastest-growing U.S. life insurers by S&P Global Market Intelligence. But the team takes more pride in knowing how Investors Preferred achieved this recognition: The productivity is a result of putting clients first and being a trustworthy partner.
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