AM Best Affirms Credit Scores of Kansas City Life Insurance Coverage Business and Its Subsidiaries – Business Wire

6August 2020

OLDWICK, N.J.–( ORGANISATIONS WIRE)– AM Best has actually affirmed the Financial Strength Score(FSR )of A(Excellent )and the Long-Term Company Credit Score (Long-Term ICR)of”a”of Kansas City Life Insurance Coverage Business (Kansas City Life). Concurrently, AM Best has actually affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of Grange Life Insurance Coverage Business (Grange Life) (Columbus, OH). The outlook of these Credit Scores (scores) is unfavorable.

In addition, AM Best has actually affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of Sunset Life Insurance Coverage Business of America (Sunset Life), in addition to Kansas City Life’s last expenditure life insurance subsidiary, Old American Insurance Provider (Old American). The outlook of these scores is steady. All companies are domiciled in Kansas City, MO, unless otherwise defined. All companies are completely owned subsidiaries of Kansas City Life.

The scores of Kansas City Life reflect its balance sheet strength, which AM Best classifies as extremely strong, in addition to its appropriate operating performance, neutral company profile and appropriate enterprise risk management (ERM). Kansas City Life’s risk-adjusted capitalization is extremely strong, as measured by Best’s Capital Adequacy Ratio (BCAR), and the use of surplus keeps in mind any other types of debt, in addition to captive insurance, does not aid the group’s capital.

An offsetting ranking aspect is the previous experience with one-time occasions negatively impacting capital and surplus. A high dividend payment ratio and changing earnings also have negatively impacted surplus development. There is also a substantial asset-liability inequality, exposing the company to a high degree of reinvestment risk and resulting in a portfolio yield that is decreasing faster than that of the company’s peers.

The scores of Grange Life reflect its balance sheet strength, which AM Best classifies as strong, in addition to its limited operating performance, limited company profile and appropriate ERM.

The scores of Sunset Life and Old American reflect the companies’ consolidated balance sheet strength, which AM Best classifies as extremely strong, in addition to its appropriate operating performance, limited company profile and appropriate ERM.

This news release associates with Credit Scores that have been published on AM Best’s site. For all ranking details relating to the release and essential disclosures, including details of the office responsible for providing each of the private scores referenced in this release, please see AM Best’s Recent Score Activity websites. For extra details regarding the usage and limitations of Credit Score opinions, please view Guide to Best’s Credit Scores. For details on the proper media usage of Best’s Credit Scores and AM Best news release, please view Guide for Media-Correct Use&of Best’s Credit Scores and AM Best Score Action Press Releases. AM Best is an international credit ranking agency, news publisher and data analytics provider specializing in the insurance market. Headquartered in the United States, the company does company in over 100 countries with local offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more details,check out www.ambest.com. Copyright © 2020 by A.M. Best Score Solutions, Inc. and/or its affiliates. ALL RIGHTS SCHEDULED. Source: businesswire.com

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