Major Rating Factors: Good quality investment portfolio (5.9 on a scale of 0 to 10) despite significant exposure to mortgages . Mortgage default rate has been low. large holdings of BBB rated bonds in addition to minimal holdings in junk bonds. Good liquidity (5.0) with sufficient resources to handle a spike in claims as well as a significant increase in policy surrenders. Fair profitability (4.7) with investment income below regulatory standards in relation to interest assumptions of reserves.
Other Rating Factors: Excellent overall results on stability tests (7.0) excellent operational trends and excellent risk diversification. Strong capitalization (9.2) based on excellent risk adjusted capital (severe loss scenario).
Stability Factors: A - Financial problems or weaknesses of a parent or affiliate company. I - Past results on our Investment Safety Index. L - Past results on our liquidity tests.
Principal Lines of Business: Ind annuities (2.7%), group life (1.7%), ind health (1.3%), other (94.3%)
Licensed in: All states except NY, PR