AM Best Revises Outlooks to Positive for GBU Financial Life
11 Julio 2024 - 11:08AM
Business Wire
AM Best has revised the outlooks to positive from stable
and affirmed the Financial Strength Rating of A- (Excellent) and
the Long-Term Issuer Credit Rating of “a-” (Excellent) of GBU
Financial Life (GBU) (Pittsburgh, PA).
The Credit Ratings (ratings) reflect GBU’s balance sheet
strength, which AM Best assesses as strong, as well as its strong
operating performance, limited business profile and appropriate
enterprise risk management (ERM).
The positive outlooks reflect GBU’s long-term improvement in its
business profile, which has come more in line with its peers. The
company has expanded in its operating jurisdictions, the lines of
business it writes and its overall position in the fraternal
market. GBU has expanded significantly in recent periods, with
large growth in total assets, capital and surplus, membership
count, employee count and distribution channels.
The balance sheet strength of GBU is assessed as strong, driven
by an adequate level of risk-adjusted capitalization, as measured
by Best’s Capital Adequacy Ratio (BCAR), and conservative reserving
practices. Capital and surplus has increased in recent years due to
GBU’s consistent operating income. The operating performance of GBU
is assessed as strong, evidenced by above-average investment
yields. Net premium growth has been rapid over the past five years,
benefiting from increases in membership, a growing distribution
network and the higher interest rate environment. GBU’s ERM program
is assessed as appropriate as the company has formalized processes,
procedures and structures governing the program.
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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Michael Lynch Financial Analyst +1 908 882
2077 michael.lynch@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