Major Rating Factors: Good quality investment portfolio (6.4 on a scale of 0 to 10) despite large holdings of BBB rated bonds in addition to moderate junk bond exposure. Exposure to mortgages is significant, but the mortgage default rate has been low. Good liquidity (6.0) with sufficient resources to handle a spike in claims as well as a significant increase in policy surrenders. Strong capitalization (9.0) based on excellent risk adjusted capital (severe loss scenario).
Other Rating Factors: Excellent profitability (7.9) with operating gains in each of the last five years. Excellent overall results on stability tests (7.9) excellent operational trends and excellent risk diversification.
Stability Factors: I - Past results on our Investment Safety Index.
Principal Lines of Business: Group annuities (60.7%), ind annuities (38.2%), other (1.2%)
Licensed in: All states, the District of Columbia and Puerto Rico