OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of B (Fair) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “bb+” of Equitable Life & Casualty Insurance Company (Equitable Life) (Salt Lake City, UT). The outlook assigned these Credit Ratings is positive.
The rating affirmations and positive outlook follow the acquisition of Equitable Life by SILAC, LLC (SILAC) in April 2017. As a result of the acquisition, a new executive management team leads operations with a fresh strategic business plan. Concurrent with the acquisition, SILAC contributed Sterling Investors Life Insurance Company to Equitable Life as a wholly-owned subsidiary. In addition, SILAC has committed to financial and operational support of Equitable Life and to no debt or debt service being incurred on the part of Equitable Life. The business initiatives include maintaining the Equitable name and location in Utah, upgrading systems and platforms to improve efficiency and capacity, introducing modern and higher profit margin products, actively managing the risk and exposure of the long-term care block of business and strategically reallocating the investment portfolio. However, there may be challenges executing these initiatives.
Equitable Life will continue to face the challenges of managing a large closed block of long-term care business, high reinsurance leverage and a current dependence on the Medicare supplement product line.
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