OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating of B+ (Good) and issuer credit rating of “bbb-” with a stable outlook for Commonwealth Dealers Life Insurance Company (CDLIC) (Richmond, Virginia).
CDLIC ceased writing insurance policies in late 2007 and is nearing the completion of the run-off process. Since it is approaching the end of its run-off process, CDLIC, after discussions with A.M. Best, has requested that CDLIC no longer participate in A.M. Best’s interactive rating process. Accordingly, concurrent with the rating affirmations, A.M. Best has withdrawn the ratings.
CDLIC has a unique organizational structure in which it is owned by more than 200 automobile dealerships in a five-state region. The company marketed credit life and credit accident and sickness business through automobile dealerships, which generally are stockholders of CDLIC.
The rating affirmations of CDLIC reflect the continued run-off of the business, strong risk-adjusted capitalization, offset by modest and fluctuating statutory operating earnings. The company’s capital and surplus has been declining and is currently $5.2 million as of June 30, 2014.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a 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.
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 © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.