Ratings of Ameritas Mutual Holding Company : A.M. Best Co. has affirmed the fiscal forcefulness rating (FSR) of Influenza A virus subtype H5N1 (Excellent) as well as issuer credit ratings (ICR) of “a+” of Ameritas Life Insurance Corp. (Ameritas Life) (Lincoln, NE), Ameritas Life Insurance Corp. of New York (Ameritas, NY), Acacia Life Insurance Company (Acacia Life) (headquartered inwards Bethesda, MD) as well as The Union Central Life Insurance Company (Union Central) (headquartered inwards Cincinnati, OH). These insurance entities contain the life/health operations of Ameritas Mutual Holding Company (Ameritas) (Lincoln, NE). Concurrently, A.M. Best has affirmed the debt rating of “a-” on $50 1000000 8.20% surplus notes due 2026 of Union Central. The outlook for all ratings is stable.
The rating affirmations primarily reverberate the group’s rigid risk-adjusted capitalization, diversified operating platform, high lineament residue canvas as well as favorable line of piece of employment organisation profile. The ratings every bit good reverberate Ameritas Life’s well-established marketplace seat inwards grouping dental insurance. As a usual asset company, Ameritas has skillful fiscal flexibility alongside the mightiness to access the uppercase markets through debt offerings. The organization’s electrical flow fiscal leverage is modest, alongside a reasonable aeroplane of intangibles facilitating a high-quality uppercase base. Additionally, A.M. Best notes that Ameritas’ below investment degree bonds currently stand upward for less than 4% of the company’s fixed income portfolio, as well as its non-agency residential mortgage-backed securities (RMBS) convey declined inwards recent periods.
A.M. Best believes that Ameritas Life’s favorable line of piece of employment organisation profile should strengthen farther nether its unified branding strategy as well as improved economies of scale. Its wide portfolio of private life, private annuity, disability income, retirement plans as well as dental as well as vision products supply a steady rootage of diversified earnings. More recently, Ameritas’ net convey been impacted past times non-insurance related lines of business; however, it has historically experienced favorable operating results inside its marrow insurance as well as annuity lines. Although A.M. Best expects these favorable results to hold inwards the almost to medium term, Ameritas may move challenged to increment sales due to the sluggish U.S. economy, prolonged depression involvement rates as well as the highly competitive landscape inside many of the group’s marrow lines of business.
Partially offsetting these positive rating factors are the small-scale spend upward inwards Ameritas’ operating income, primarily driven past times the results of its Calvert Investments, Inc. (Calvert) subsidiary, which inwards 2012 experienced a noticeable drib inwards assets nether management. Operating results every bit good convey been negatively impacted past times a lack of scale, lower-than-expected persistency as well as the touching on of the depression involvement charge per unit of measurement surround inside the grouping retirement plans segment. While net increased inwards the company’s private life as well as annuity businesses, A.M. Best notes that a pregnant total of Ameritas’ interest-sensitive reserves stay at or almost the guaranteed minimum involvement rate, which has caused some spread compression. However, this has been get-go past times an increment inwards net from its variable annuity production line every bit a outcome of increased sales as well as higher fees associated alongside an increment inwards fund balances. Moreover, spell A.M. Best views favorably the pending sale of Acacia Federal Savings Bank due to the regulatory burden associated alongside beingness a banking concern asset company, the pending sale has resulted inwards a contingent cyberspace loss of some $35 million. Approximately $300 1000000 of primarily interest-only loans convey been excluded from the sale as well as convey been transferred to Ameritas’ full general line of piece of employment organisation human relationship investment portfolio. A.M. Best volition closely monitor the performance of these transferred loans.
Factors that could outcome inwards positive rating actions for Ameritas inwards the almost to medium term include continued favorable net trends, improved operating performance at Calvert as well as continued overall peak line growth.
Factors that may outcome inwards negative rating actions include deterioration inwards the group’s operating results, cloth investment losses or a lack of sustained revenue growth inside its marrow lines of business.
A.M. Best every bit good has withdrawn the FSR of A- (Excellent) as well as ICR of “a-” of Brokers National Life Assurance Company (BNLAC) (headquartered inwards Austin, TX). Following the reinsurance of its marrow dental as well as vision line of piece of employment organisation to Ameritas Life, BNLAC volition convey a negligible total of reserves as well as is expected to move sold (essentially every bit a shell) to a 3rd political party inwards the almost term.