Major Rating Factors: Good liquidity (6.8 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 (4.6) with substantial holdings of BBB bonds in addition to moderate junk bond exposure. Exposure to mortgages is significant, but the mortgage default rate has been low. Fair profitability (4.9) with investment income below regulatory standards in relation to interest assumptions of reserves.
Other Rating Factors: Fair overall results on stability tests (4.1) including fair risk adjusted capital in prior years. Strong capitalization (7.1) based on excellent risk adjusted capital (severe loss scenario).
Stability Factors: G - Fast asset or premium growth. 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 (88.0%), ind health (7.2%), group health (2.8%), group life (1.4%), ind annuities (0.3%), other (0.3%)
Licensed in: All states except NY