A.M. Best Affirms Ratings of Zale Life Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating of B+ (Good) and issuer credit rating of “bbb-” of Zale Life Insurance Company (Zale Life) (Phoenix, AZ). The outlook for both ratings is stable.

The ratings of Zale Life reflect its role as a provider of credit life and disability products for its parent organization, Zale Corporation. In addition, the ratings consider Zale Life’s cost efficient captive distribution channel and its favorable risk-adjusted capitalization. Offsetting rating factors include modest levels of credit life and credit accident and health premiums and relatively low operating earnings and narrow geographic focus.

In recent years, Zale Life increased its state licenses from 16 to 48. With this license expansion, management plans to gradually transition business currently written with an affiliate to Zale Life. A.M. Best will continue to monitor this transition process, with the expectation that Zale Life will report more favorable premium growth trends in the near term. A.M. Best also will monitor the company’s profitability and capitalization levels throughout this period.

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.