KBRA Assigns Ratings to SILAC Insurance Company and Sterling Investors Life Insurance Company
10 Mayo 2024 - 5:52PM
Business Wire
KBRA assigns BBB insurance financial strength ratings to SILAC
Insurance Company ("SILAC") and Sterling Investors Life Insurance
Company ("SILIC"). The Outlook for both ratings is Stable.
The ratings reflect solid capitalization with favorable growth
trends in capital, a seasoned management team, minimal exposure to
disintermediation risk, and expanded distribution with a focus on
independent agents. SILAC’s year-end 2023 CAL RBC of 375% is solid
and above target levels. Demonstrated growth in capital has been
favorable, benefiting from solid earnings as well as significant
capital contributions. As SILAC has no legacy annuity business,
disintermediation risk is substantially mitigated as all new
business since launch remains subject to surrender charges and the
company strives to maintain competitive crediting rates. SILAC has
also demonstrated growth in its core of independent marketing
organizations (IMOs) and agent relationships. Balancing these
strengths are strong competition in key product lines, exposure to
potential spread compression, reliance on reinsurance and
counterparty concentration risk, elevated investment risk, and key
person risk. SILAC’s key products are fixed indexed annuities,
which have substantial competition from established market
participants with strong franchises, broader distribution reach, as
well as access to significant capital. Product development is a
strength and SILAC is focused on developing additional products to
drive sales and maintain market share. The company’s earnings
stream is somewhat concentrated and exposed to changes in interest
rates and credit spreads. Utilized as part of the company’s
strategy to manage strain and scale assets, SILAC is reliant on
reinsurance and exposed to concentration risk. Counterparty credit
risk is somewhat offset by the strong credit quality of some of its
reinsurers as well as active management of reinsurance programs,
including the swift recapture of select reserves earlier this
year.
SILAC Insurance Company is a life and health insurer that
markets annuity products to its target middle market customers
across a robust distribution network. Sterling Investors Life
Insurance Company, a wholly owned subsidiary of SILAC, is a life
and health insurer, with a mix of life, annuity, and individual
health business. At both entities, non-annuity legacy business is
in run-off and the majority of liabilities are reinsured. Both
companies are domiciled in Indiana.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- Insurance: Insurer & Insurance Holding Company Global
Rating Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1004207
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version on businesswire.com: https://www.businesswire.com/news/home/20240510943600/en/
Analytical Contacts
Jack Morrison, Senior Director (Lead Analyst) +1 646-731-2410
jack.morrison@kbra.com
Lewis Delosa, Director +1 646-731-2312 lewis.delosa@kbra.com
Peter Giacone, Senior Managing Director (Rating Committee Chair)
+1 646-731-2407 peter.giacone@kbra.com
Business Development Contact
Tina Bukow, Managing Director +1 646-731-2368
tina.bukow@kbra.com