AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of Fidelity Life Association, A Legal Reserve Life Insurance Company
27 Septiembre 2024 - 2:44PM
Business Wire
AM Best has removed from under review with developing
implications and affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-”
(Excellent) of Fidelity Life Association, A Legal Reserve Life
Insurance Company (Fidelity Life) (Des Plaines, IL). Fidelity Life
is a wholly owned subsidiary of Vericity, Inc. (Vericity). The
outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Fidelity Life’s balance sheet strength,
which AM Best assesses as very strong, as well as its adequate
operating performance, neutral business profile and appropriate
enterprise risk management.
The rating actions follow the completed acquisition of Vericity
by iA American Holdings, Inc., a subsidiary of iA Financial
Corporation, Inc. on June 28, 2024. Fidelity Life will now operate
as a wholly owned subsidiary as part of iA’s strategy to expand its
U.S. operations. The acquisition is expected to extend the
capabilities of Fidelity Life and eFinancial to make life insurance
more accessible. AM Best expects earnings strain from future growth
to be supported by capital contributions from iA Financial as
needed.
Fidelity Life’s balance sheet is underpinned by its
risk-adjusted capitalization, which is at the strongest level, as
measured by Best’s Capital Adequacy Ratio (BCAR). Fidelity Life’s
surplus level has been improved by executed capital contributions
from iA Financial. However, the company’s operating performance is
expected to be impacted by strategic actions that include changes
to the commission structure as well as a recapture of business.
Business profile and risk management characteristics are expected
to be integrated over the next couple of years. Overall near and
intermediate results will be monitored as integration efforts
continue.
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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Brent DeAngelis Financial Analyst +1 908 882
1730 brent.deangelis@ambest.com
Kate Steffanelli Associate Director +1 908 882
2337 kate.steffanelli@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