Abstract
F&G Life and affiliates had their ratings done by A.M Best Co. The rating agency allotted different grades to the company and its affiliates. The outlook of the rating was stable. The article below unwinds certain features of the rating process.
F&G Life and affiliates were lately rated by A.M Best Co. A.M Best assigned grades to the companies in various categories. The oldest company rating firm, A.M BEST CO., which was founded in the year 1899, did the financial strength rating or the FSR along with ICR or issuer credit rating.
Ratings of F&G Life and affiliates at a glance-
The ratings indicated that the company is doing well as far as sale of annuity is concerned. This also implies that the company has remained committed in matters related to extending reinsurance back up. Owing to this, F&G Life has been able to maintain healthy sales volume, diversification of various sources of distribution and maintain capitalization adequately.
A.M Best Co., has appreciated the company and its affiliates progress in context of equity indexed annuities. The company has also received appreciation for offering effective product designs, various hedging programs, compliance programs and profiles of consumers.
Cause of concern:
One cause of concern for the company is that owing to strong competition, F&G Life and affiliates have suffered losses in the last couple of years. Even though, Old Mutual plc has risen up the situation by injecting enough capital into the company, capitalization has not exceeded but remained at the threshold limit.
Grades assigned during the rating of F&G Life (Fidelity and Guaranty Life Insurance Company) and affiliates:
Financial strength rating or FSR for Fidelity and Guaranty Life Insurance Company and Fidelity and Guaranty Life Insurance Company of New York. Both the companies were assigned A.
With regard to ICR or issuer credit rating, both the above companies were allotted “a+”.
FS or financial strength rating of Americom Life & Annuity Insurance Company or Americom Life was assigned A-. The ICR, grade allotted to Americom Life was “a-”.