AM Best Revises Outlooks to Negative for Individual Assurance Company, Life, Health & Accident; LifeShield National Insurance Co.

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Individual Assurance Company, Life, Health & Accident (IAC) and LifeShield National Insurance Co. (LifeShield National). Both companies are domiciled in Oklahoma City, OK.

The Credit Ratings (ratings) reflect LifeShield National and IAC’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.

The revised outlooks reflect a decline in risk-adjusted capital at LifeShield National, which was driven by the elevated loss ratios on its cancer product. Claims on the product typically subsided by the fourth quarter of each year due to the built-in capital on benefits, but this did not materialize in 2022 as utilization remained high. AM Best will continue to monitor LifeShield National’s performance going forward as it executes its planned capital management and rating actions.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit

Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.