OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of Midland National Life Insurance Company (Midland National) and North American Company for Life and Health Insurance (North American) (both domiciled in West Des Moines, IA). In addition, AM Best has affirmed the Long-Term ICR of “a-” and the Long-Term Issue Credit Rating of “a-” on the $200 million 7.0% senior unsecured notes, due 2043 and the $500 million 4.45% senior unsecured notes, due 2027, of Sammons Financial Group, Inc. (SFG, Inc.) (Delaware). The outlook of these Credit Ratings (ratings) is stable. SFG, Inc. is an intermediate holding company for Midland National and North American, and is indirectly owned by Sammons Enterprises, Inc. Midland National and North American – the group’s key life/health insurance subsidiaries – are jointly referred to as the Sammons Financial Group (SFG).
The ratings reflect SFG’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
The very strong balance sheet assessment is supported by SFG’s risk-adjusted capital position and strong asset and liability matched investment portfolio despite having a higher-than-industry allocation to structured securities. In addition, SFG’s strong operating performance is supported by its consistent pre-tax operating earnings and double-digit statutory returns on equity. Its business profile reflects SFG’s prominent market positions in the fixed index annuity, as well as its COLI/BOLI operating segments with a national footprint and more diversified product portfolio than some of its peers.
Offsetting detractors include a very competitive fixed index annuity segment, which is becoming more crowded, poor operating trends in SFG’s life segments, and a capital and surplus-to-liability ratio lower than similarly rated peers.
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