OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Ratings of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-”of Trustmark Insurance Company, Trustmark Life Insurance Company (both domiciled in Lake Forest, IL) and Trustmark Life Insurance Company of New York (Albany, NY) (collectively referred to as Trustmark).
Concurrently, A.M. Best has affirmed the Long-Term ICR of “bbb-”of the holding company, Trustmark Group, Inc. (TGI) and the Long-Term Issue Credit Rating of “bb” on $75 million floating rate trust preferred securities, due 2035 ($39.9 million currently outstanding), issued by Trustmark Finance Trust I. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Trustmark’s more-than-adequate risk-adjusted capitalization, good operating profitability and diverse business profile. Trustmark’s maintenance of a favorable risk-adjusted capitalization level for its insurance and investment risks continues to stem from relatively consistent operating gains, despite dividend payments to the parent organization. The organization’s business diversity reflects its voluntary life, supplemental health and small-group self-funded products, as well as its non-insurance administrative, and wellness and health management services.
Trustmark, however, remains challenged by a highly competitive voluntary benefits market, which includes many national insurers across its various lines of business. In addition, the small-group self-funded medical market is extremely competitive, with carriers increasingly seeking new business in this space.
A.M. Best also notes that TGI’s debt-to-capital ratio is considered low at approximately 3%, and the group maintains more-than-adequate interest coverage.
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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.