OLDWICK, N.J.–(BUSINESS WIRE)–#insurance—AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Investors Preferred Life Insurance Company (IPL) (Rapid City, SD). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect IPL’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
IPL’s risk-adjusted capitalization is at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s surplus has doubled over the past four years, and growth is modest from a dollar standpoint as the company looks to increase scale. There is limited asset risk on IPL’s balance sheet based on its private placement life insurance business model, which is focused on variable products and limited mortality risk as the company utilizes a group of highly rated reinsurers. There is regulatory risk associated with the tax benefits provided to IPL’s concentrated segment of high net worth individuals.
The stable outlooks reflect the company’s strong level of balance sheet strength with a growing surplus, consistently positive operating results using a fee-based model and its unique high net worth business model.
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.
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