OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and Long-Term Issuer Credit Ratings (Long Term ICR) of “a+” of the U.S. property/casualty subsidiaries of Assurant, Inc. (Assurant) (headquartered in New York, NY) [NYSE: AIZ]. Concurrently, A.M. Best has affirmed the Long-Term ICR of “bbb+”and the Long- and Short-Term Issue Credit Ratings (Long-Term IR; Short-Term IR) of Assurant. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed list of the companies and Long- and Short-Term IRs.)
The ratings reflect Assurant’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
Somewhat offsetting these positive ratings factors are the property/casualty group’s natural catastrophe exposure and its continued dependence on third-party reinsurance. These factors expose the property/casualty group’s earnings to a degree of variability. However, these concerns are somewhat mitigated by its geographic spread of risk, management’s use of risk management tools, including tracking aggregation of risks, and product design.
As of Dec. 31, 2017, Assurant’s unadjusted debt-to-capital and debt-to-tangible capital ratios were approximately 21% and 27%, respectively, with a fixed charge coverage ratio that is well supportive of its ratings.
Assurant also maintains a $400 million commercial paper program, which is secured by a back-up $400 million
The FSR of A (Excellent) and the Long-Term ICRs of “a+” have been affirmed with a stable outlook for the following property/casualty subsidiaries of Assurant, Inc.:
- American Bankers Insurance Company of Florida
- American Security Insurance Company
- Standard Guaranty Insurance Company
- Caribbean American Property Insurance Company
- Voyager Indemnity Insurance Company
- Reliable Lloyds Insurance Company
The following Long-Term IRs have been affirmed with stable outlook:
-- “bbb+” on USD 300 million 4.90% senior unsecured bonds, due 2028
-- “bbb+” on USD 300 million floating senior unsecured bonds, due 2021
-- “bbb+” on USD 300 million 4.20% senior unsecured bonds, due 2023
-- “bbb+” on USD 350 million 4.00% senior unsecured bonds, due 2023
-- “bbb+” on USD 375 million 6.75% senior unsecured bonds, due 2034
-- “bbb” on USD 400 million 7.00% subordinated bonds, due 2048
-- “bbb-” on USD 288 million 6.50% preferred securities, due 2021
The following Short-Term IR has been affirmed:
-- AMB-1 on commercial paper
The following indicative Long-Term IRs on securities available under the shelf registration have been affirmed with stable outlook:
-- “bbb+” on senior unsecured
-- “bbb” on subordinated debt
-- “bbb-” on preferred stock
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.