AM Best Affirms Credit Ratings of Homesteaders Life Company
2024年5月9日 - 10:13PM
ビジネスワイヤ(英語)
AM Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-”
(Excellent) of Homesteaders Life Company (Homesteaders) (West Des
Moines, IA). Concurrently, AM Best has affirmed the Long-Term Issue
Credit Rating of “bbb-” (Good) of the $20 million, 7.75% surplus
notes due 2053, and the $20 million 7.75% surplus notes due 2053.
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Homesteaders’ balance sheet strength, which
AM Best assesses as strong, as well as its adequate operating
performance, neutral business profile and appropriate enterprise
risk management (ERM).
Homesteaders’ balance sheet strength assessment reflects its
strong risk-adjusted capitalization, as measured by Best’s Capital
Adequacy Ratio (BCAR). AM Best notes that while the company’s
capital position remains within the strong category, there has been
a consistent year-over-year decline in absolute and risk-adjusted
capital levels, attributable to strategic investments in the
company’s non-insurance subsidiaries. These investments, such as
eFuneral Solutions, help grow core pre-need insurance markets and
improve strategic distribution partnerships. The investments,
however, are non-admitted on a statutory basis. Homesteaders’
capital position also was impacted by the write-off of all
remaining assets related to the company’s Scottish Re reinsurance
treaty in 2023.
Homesteaders’ balance sheet strength assessment also is
reflective of its high quality, liquid investment portfolio
primarily consisting of investment grade bonds. Financial leverage
and coverage metrics are consistent with Homesteaders’ current
ratings. Operating leverage remains low but increased slightly as
the company expanded its Federal Home Loan Bank spread program.
Homesteaders’ adequate operating performance is reflective of
consistent operating results, driven by net investment income and
realized capital gains. Supporting Homesteaders’ strong balance
sheet strength assessment and adequate operating performance is its
neutral business profile as a leader in pre-need insurance markets
despite increasing competitive pressures and funeral home
consolidation. The company’s ERM program remains appropriate for
its risk profile.
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.
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Tyler Samani Financial Analyst +1 908 882
2296 tyler.samani@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Jacqalene Lentz Director +1 908 882 2011
jacqalene.lentz@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com