AM Best Affirms Credit Ratings of Primerica, Inc. and Its Subsidiaries
15 Novembre 2023 - 8:01PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A+
(Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR)
of “aa-” (Superior) of Primerica Life Insurance Company (Nashville,
TN) and its affiliates, National Benefit Life Insurance Company
(Long Island City, NY) and Primerica Life Insurance Company of
Canada (Mississauga, Ontario), collectively referred to as
Primerica Group. Additionally, AM Best has affirmed the Long-Term
ICR of “a-” (Excellent) of Primerica, Inc. (Primerica)
(headquartered in Duluth, GA) [NYSE: PRI], which is the holding
company for the group’s insurance and non-insurance operating
companies. AM Best also has affirmed the Long-Term Issue Credit
Rating of “a-” (Excellent) on $600 million, 2.8% senior unsecured
notes, due 2031, of Primerica. The outlook of these Credit Ratings
(ratings) is stable.
The ratings reflect Primerica Group’s balance sheet strength,
which AM Best assesses as very strong, as well as its very strong
operating performance, favorable business profile and appropriate
enterprise risk management.
Primerica’s ratings continue to recognize the group’s strongest
level of risk-adjusted capitalization, as measured by Best’s
Capital Adequacy Ratio (BCAR). In addition, the ratings reflect
good liquidity, financial flexibility and an investment portfolio
that is focused on fixed income with no alternative asset classes,
and modest exposure to commercial mortgage-backed securities.
Primerica continues to operate and report earnings on a
consistently high level with its return-on-equity measures among
the highest across its industry peers. This performance is
supported by steady premium growth driven by its vast distribution
system geographically diversified in U.S. and Canadian
marketplaces. Primerica has an extensive agent recruitment process
with a well established monitoring system to ensure compliance of
its processes and procedures. This is also a reflection of
Primerica’s appropriate enterprise risk management assessment,
which is capable of identifying, assessing, monitoring and
mitigating the company’s risks. Much of these risks have been
managed through ceding business to highly rated reinsurance
partners and using captive reinsurance companies quite extensively,
reflecting higher reinsurance leverage ratios compares to its
peers.
The group’s business profile revolves centrally around its core
term life insurance offering and in particular, the investments
made in its simplified issue product. Those not qualifying for a
simplified issue term life product have the option to apply for a
traditional underwritten product. Beyond the Primerica Group,
Primerica also offers the distribution of primarily third-party
Investment & Savings Products and other non-life products.
Recently Primerica’s strategy has included a product expansion
beyond its core term life and investments offerings. With its
expansion through e-TeleQuote and easyMed Insurance Services, its
product distribution has expanded to Medicare Advantage and
Medicare Supplement products.
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.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20231115963412/en/
Wayne Kaminski Senior Financial Analyst +1 908
882 1916 wayne.kaminski@ambest.com
Jacqalene Lentz Director +1 908 882 2011
jacqalene.lentz@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com
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