AM Best Assigns Credit Ratings to American Century Life Insurance Company
06 Agosto 2024 - 2:10PM
Business Wire
AM Best has assigned a Financial Strength Rating of B++
(Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) to
American Century Life Insurance Company (American Century)
(Columbus, Ohio). The outlook assigned to these Credit Ratings
(ratings) is stable.
The ratings reflect American Century’s balance sheet strength,
which AM Best assesses as strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management (ERM).
American Century’s strong level of balance sheet strength is
underpinned by its risk-adjusted capitalization being assessed at
the strongest level, as measured by Best’s Capital Adequacy Ratio
(BCAR). AM Best expects American Century’s risk-adjusted
capitalization to remain at the strongest level prospectively.
Although American Century has an elevated portion of invested
assets allocated toward mortgage loans, the company’s bond
portfolio is comprised of primarily NAIC 1 securities.
American Century’s operating performance is assessed as
adequate. Consistent operating and net earnings have been reported
over at least the latest five-year period. Earnings are driven by
the spread of the company’s annuity offerings.
American Century is licensed to operate in 40 states, with its
premium and distribution concentrated in Texas, where the company
was domiciled prior to 2023. The company, now domiciled in Ohio,
currently offers two products: a single premium deferred annuity
and a single premium immediate annuity. Products are mainly
distributed through the independent agency channel.
The company’s ERM is assessed as appropriate, with the
management team monitoring and addressing risks quickly, as they
arise. While the company does not currently make use of
reinsurance, it does utilize a number of third-party vendors in
operations.
Negative rating actions could occur if there is a material
deterioration in American Century’s balance sheet strength such
that it no longer supports the strong assessment. Positive rating
actions, while unlikely, could occur if the company’s operating
metrics remain profitably above industry averages as the company
gains scale. AM Best will closely monitor American Century’s
results.
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 Jacqalene Lentz
Director +1 908 882 2011 jacqalene.lentz@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310 christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com