OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of SWBC Life Insurance Company (SWBC Life) (San Antonio, TX).
The Credit Ratings (ratings) reflect SWBC Life’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The revision of the outlooks to positive reflects AM Best’s expectation that SWBC Life’s positive capital growth trend will continue and the company will maintain current balance sheet metrics, including its favorable overall liquidity position as well as its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio, which is currently at the strongest level. SWBC Life’s absolute and risk-adjusted capitalization has exhibited notable increases in recent years due to the retention of consistent operating gains. In addition, SWBC Life has maintained a stable top line despite increased competition and the recent economic downturn caused by the COVID-19 pandemic as the company’s business model of directly writing and assuming credit insurance has expanded with new distribution partnerships and additional lines of business in recent periods. As a result, SWBC Life has experienced lower volatility in premium generation relative to the credit life insurance industry in general.
SWBC Life is highly integrated with their parent company, Southwest Business Corporation (SWBC), a Texas-based diversified financial services company. SWBC Life benefits from the expertise of the Financial Institution Division within SWBC to sell and distribute their credit insurance product. SWBC Life also benefits from the extensive and evolving ERM program at SWBC, which encompasses the entire organization.
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