AM Finest has affirmed the Monetary Energy Score (FSR) of A- (Glorious) and the Lengthy-Time period Issuer Credit score Scores (Lengthy-Time period ICR) of “a-” of American Fairness Funding Life Insurance coverage Firm (AEILIC) and its subsidiaries, American Fairness Funding Life Insurance coverage Firm of New York (Lake Success, NY) and Eagle Life Insurance coverage Firm, collectively known as AEL. Concurrently AM Finest has affirmed the Lengthy Time period ICR of “bbb-” of American Fairness Funding Life Holding Firm [NYSE: AEL] and its present Lengthy Time period Concern Credit score Scores (Lengthy-Phrases IRs). The outlook for all of those Credit score Scores (rankings) is steady. All corporations are domiciled in West Des Moines, IA, except in any other case specified. (Please see under for detailed itemizing of the Lengthy-Time period IRs).
The rankings replicate AEL’s steadiness sheet power, which AM Finest categorizes as ample, in addition to its sturdy working efficiency, impartial enterprise profile and applicable enterprise threat administration.
AEL maintains ample risk-based capital and persevering with to take care of a top quality of capital with minimal use of surplus notes, captives and reinsurance. AEL has a robust monitor file of worthwhile premium development, which has recently outpaced the business common by sustaining spreads which might be comparatively regular. AEL has funding threat primarily inside its collateralized loan obligations, industrial mortgage-backed securities and industrial mortgage loan portfolios, which might lead to asset impairments attributable to present COVID-19 financial situations; AM Finest will proceed to watch these investments. Presently, these considerations are offset by sturdy holding firm liquidity and defensive posturing of liquidity sources throughout the funding portfolio.
The group continues to take care of a robust market place within the more and more aggressive fixed-index annuity phase nationally, being amongst one of many prime market leaders within the unbiased advertising group channel. Whereas AEL’s enterprise profile is impartial, it stays concentrated given its concentrate on fixed-index annuity merchandise and a declining total market share place associated to development within the total market from the bank and dealer/seller channel, which has traditionally been an underweight channel for AEL.
Holding firm liquidity is seen favorably with monetary leverage and curiosity protection ratios inside AM Finest’s expectations.
The next Lengthy-Time period IRs have been affirmed with a steady outlook:
American Fairness Funding Life Holding Firm
— “bbb-” on $500 million 5% senior unsecured notes due 2027
— “bb” on $300 million 6.625% perpetual, non-cumulative most popular stock
— “bb” on $400 million 5.95% perpetual, non-cumulative most popular stock
The next indicative Lengthy-Time period IRs underneath the shelf registration have been affirmed with a steady outlook:
American Fairness Funding Life Holding Firm
— “bbb-” on senior unsecured debt
— “bb+” on subordinated debt
— “bb” on most popular stock
American Fairness Capital Belief V and VI
— “bb” on belief most popular securities
This press launch pertains to Credit score Scores which were printed on AM Finest’s web site. For all ranking data referring to the discharge and pertinent disclosures, together with particulars of the workplace liable for issuing every of the person rankings referenced on this launch, please see AM Finest’s Current Score Exercise internet web page. For added data relating to the use and limitations of Credit score Score opinions, please view Information to Finest’s Credit score Scores. For data on the right media use of Finest’s Credit score Scores and AM Finest press releases, please view Information for Media – Correct Use of Finest’s Credit score Scores and AM Finest Score Motion Press Releases.
AM Finest is a worldwide credit standing company, information writer and information analytics supplier specializing within the insurance coverage business. Headquartered in the US, the corporate does enterprise in over 100 nations with regional workplaces in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico Metropolis. For extra data, go to www.ambest.com.
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