OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of Zurich American Life Insurance Company (ZALICO) (Schaumburg, IL). Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” of Farmers New World Life Insurance Company (FNWL) (Mercer Island, WA). The outlook of these Credit Ratings (ratings) is stable.
The ratings of ZALICO reflect its strategic importance to the group as the provider of affluent market and corporate life and pension products, the support it receives from its ultimate parent and a sufficient level of risk-adjusted capitalization. Partially offsetting rating factors include a modest operating profile given the high utilization of affiliated reinsurance and investments in new business initiatives, along with the highly competitive affluent marketplace in which ZALICO operates.
The ratings for FNWL reflect its strategic value to the Farmers Group enterprise and Zurich Insurance Group Ltd, strong risk-adjusted capitalization, robust life premium growth and historically positive earning trends as a material contributor to the overall group in terms of new business value and operating profits. These positive rating factors are partially offset by the challenges of continuing to improve persistency on its life business, growing capital, as dividends to shareholders mostly offset organic earnings, increased holdings in more risky and/or less liquid asset types but still maintaining overall good credit quality of invested assets, use of affiliated reinsurance and flat investment income trends.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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