A.M. Best Affirms Ratings on Centurion Life Insurance Company and Centurion Casualty Company

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit rating (ICR) of “a” of Centurion Life Insurance Company (CLIC) (Des Moines, IA), a subsidiary of Wells Fargo Financial, Inc. (WFF), whose parent is Wells Fargo & Company (San Francisco, CA) (NYSE:WFC). Concurrently, A.M. Best has affirmed the FSR of A- (Excellent) and the ICR of “a-” of Centurion Casualty Company (CCC) (Des Moines, IA), a wholly owned subsidiary of Wells Fargo Financial Bank, which is a subsidiary of WFF. The outlook for all ratings is stable.

The ratings of CLIC reflect its excellent risk-adjusted capital position, positive operating results and growth in individual annuity business. CLIC has experienced a general decline in its credit insurance business but has maintained solid profitability due to its low cost operation and favorable loss experience.

Partially offsetting these rating strengths are the company’s limited business profile, traditional mono-line credit insurance product focus and challenges of growing its market position in the highly competitive fixed annuity business.

The ratings for CCC recognize its solid capitalization, outstanding operating results and the benefits derived from its affiliation with WFF. Partially offsetting these positive factors are CCC’s decline in premium volume over the most recent five years, its minimal product diversification, its dependency on the consumer finance operations of its parent, its significant use of fronting and the strict regulatory oversight of the credit insurance industry.

The rating outlook is based on A.M. Best's expectation that the companies’ consistently positive operating performance will continue to drive strong organic surplus growth, supporting their excellent capitalization in the near term.

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.