OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating of B++ (Good) and issuer credit rating of “bbb” of Tower Life Insurance Company (Tower Life) (San Antonio, TX). Concurrently, A.M. Best has withdrawn the ratings based on the company’s decision to no longer participate in A.M. Best’s interactive rating process.
The revised outlook is based on Tower Life’s declining trend in insurance risk revenue and recent operating losses. Additionally, Tower Life continues to have a sizeable investment in home office real estate. The ratings acknowledge the company’s favorable risk-adjusted capital position and its efforts to expand its third party administrative operations.
The principal methodologies used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Rating Health Insurance Companies”; “Risk Management and the Rating Process for Insurance Companies”; and “Understanding BCAR for Life/Health Insurers.” Methodologies can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.