OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating of B+ (Good) and the issuer credit rating of “bbb-” of Servco Life Insurance Company (Servco Life) (Houston, TX). The outlook for both ratings is stable. Servco Life is affiliated with Gulf States Toyota, Inc., one of the largest private corporations in the United States and a major distributor of Toyota cars, trucks and parts in Texas, Oklahoma, Louisiana, Mississippi and Arkansas. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The affirmation of Servco Life’s ratings reflects its solid capitalization despite significant stockholder dividends in recent periods and positive—albeit declining—operating results as reserves continue to run off. In 2009, Servco Life ceased writing credit life and disability insurance and was effectively placed into run-off mode.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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