OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has revised the outlook to positive from stable for the
Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the
Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICRs of
“bbb” of New Era Life Insurance Company and its wholly owned life
insurance subsidiaries, New Era Life Insurance Company of the
Midwest and Philadelphia American Life Insurance Company. The
outlook of the FSR remains stable. All companies are domiciled in
Houston, TX, and collectively are known as New Era Group.
The ratings reflect New Era Group’s balance sheet strength, which AM
Best categorizes as adequate, as well as its adequate operating
performance, limited business profile and appropriate enterprise risk
management (ERM).
The revised Long-Term ICR outlook to positive is driven mainly by
continuous business growth and improvement of risk-adjusted capital and
quality of capital. The group’s capital also has increased significantly
to $90.9 million in 2018 from $52.6 million in 2012. As a result, the
group has steadily reduced leverage metrics stemming from its $10
million surplus note. Operating performance is adequate and improving,
as evidenced by good loss ratios and return on equity (ROE) measures.
The group’s business profile consists of three core lines of business,
for which the business growth of each is managed to achieve the group’s
targeted ROEs, and it has a good track record of management and pricing.
ERM continues to be performed well by the group as it identifies its
risks well. The group also displays a solid understanding of risk-reward
tradeoffs on both sides of the balance sheet, which is a key principle
by which the group is managed.
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 Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Bruno Caron, FSA, MAAA
Senior Financial Analyst
+1
908 439 2200, ext. 5144
[email protected]
Edward
Kohlberg
Director
+1 908 439 2200, ext. 5664
[email protected]
Christopher
Sharkey
Manager, Public Relations
+1 908 439
2200, ext. 5159
[email protected]
Jim
Peavy
Director, Public Relations
+1 908 439
2200, ext. 5644
[email protected]
