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.
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