OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has upgraded the Long-Term Issuer Credit Rating
(Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial Strength
Rating (FSR) of B++ (Good) of SWBC Life Insurance Company (SWBC Life)
(San Antonio, TX). The outlook of the Long-Term ICR has been revised to
stable from positive while the FSR outlook remains stable.
The ratings reflect SWBC Life’s balance sheet strength, which AM Best
categorizes as very strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise risk
management (ERM).
The Long-Term ICR upgrade reflects an overall improvement in AM Best’s
assessment of the company’s ERM program. In 2018, the company formally
established a risk policy, which has enhanced its risk framework with a
clear identification of risks, risk tolerances and risk appetite
statements. This enhanced risk policy should allow SWBC Life to manage
risk identification more effectively through additional evaluation of
risk assessments, along with mitigation efforts with further monitoring
by all senior managers. The ratings also recognize that SWBC Life’s
ultimate parent, Southwest Business Corporation (SWBC), maintains a
robust cybersecurity program as part of the company’s overall risk
management process. As part of its cybersecurity program, SWBC focuses
on risk identification and threat detection, as well as incident
response and recovery planning, to maximize its resiliency.
Partially offsetting these positive rating factors is the company’s
modest absolute capital and surplus level, although the company has
recorded a strong compounded annual growth rate of 8.0% over the last
five years as a result of organic growth. The company operates
exclusively in the highly competitive credit insurance marketplace and
historically and currently writes a significant majority of the direct
business in just one state, which contributes to a concentrated
regulatory and economic profile. However, AM Best acknowledges the
progress management has made in geographic expansion to date.
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
Prafull Jhawar
Senior Financial Analyst
+1 908 439 2200,
ext. 5214
[email protected]
Erik
Miller
Associate Director
+1 908 439 2200, ext. 5187
[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]
