Major Rating Factors: Good liquidity (5.4 on a scale of 0 to 10) with sufficient resources to handle a spike in claims as well as a significant increase in policy surrenders. Fair quality investment portfolio (4.8) with large holdings of BBB rated bonds in addition to junk bond exposure equal to 97% of capital. Exposure to mortgages is significant, but the mortgage default rate has been low. Fair overall results on stability tests (4.6).
Other Rating Factors: Weak profitability (2.9) with operating losses during the first six months of 2022. Strong capitalization (7.0) based on excellent risk adjusted capital (severe loss scenario).
Stability Factors: I - Past results on our Investment Safety Index. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Group annuities (30.3%), group health (26.5%), ind annuities (12.9%), group life (7.9%), ind health (7.7%), other (14.6%)
Licensed in: All states, the District of Columbia and Puerto Rico