AM Best Affirms Credit Ratings of Assurant, Inc.; Its Property/Casualty Subsidiaries; and Life/Health Subsidiaries
06 September 2024 - 4:27PM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR)
of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long Term
ICR) of “aa-” (Superior) of the U.S. property/casualty (P/C)
subsidiaries of Assurant, Inc. (Assurant) (headquartered in
Atlanta, GA) [NYSE: AIZ]. These companies are collectively referred
to as Assurant P&C Group (Assurant P&C). At the same time,
AM Best has affirmed the Long-Term ICR of “a-” (Excellent) all
associated Long-Term Issue Credit Ratings (Long-Term IR),
indicative Long-Term IRs and the Short-Term IR of Assurant.
Concurrently, AM Best has affirmed the FSR of A (Excellent) and the
Long-Term ICRs of “a” (Excellent) of Assurant’s credit and
life/health (L/H) subsidiaries: American Bankers Life Assurance
Company of Florida (Miami, FL) and Caribbean American Life
Assurance Company (San Juan, PR) collectedly known as Assurant
Lifestyle L&H. The outlook on all these Credit Ratings
(ratings) is stable. (See below for a detailed list of the
companies and Long- and Short-Term IRs.)
The ratings of Assurant P&C reflect its balance sheet
strength, which AM Best assesses as very strong, as well as its
strong operating performance, favorable business profile and
appropriate enterprise risk management (ERM).
Assurant P&C’s very strong balance sheet strength is
supported by risk-adjusted capitalization at the strongest level,
as measured by Best’s Capital Adequacy Ratio (BCAR), and its very
strong earnings power with relatively low volatility (a significant
portion of which is derived from its low-risk businesses,
particularly its business in the global lifestyle segment). The
group’s favorable balance sheet position is further bolstered by
its positive cash flows and stable reserves. This is partially
offset by Assurant’s property catastrophe exposure, which stems
mostly from its lender placed homeowners’ business in global
housing, and its heavy reliance on high-quality third-party
reinsurance that is effective in mitigating this risk to a level
more commensurate with the group’s overall risk appetite.
Assurant’s operating performance is a byproduct of its highly
specialized niche businesses, earnings diversification and
management’s strategy to partner with market leaders in both its
global lifestyle and global housing segments. Both segments are
steady contributors to Assurant’s profits. As a result, Assurant
P&C consistently outperforms its peers and generates superior
returns on capital.
The ratings of Assurant Lifestyle L&H reflect its balance
sheet strength, which AM Best assesses as very strong, as well as
its strong operating performance, limited business profile and
appropriate ERM. Assurant Lifestyle also receives one level of
rating enhancement from its affiliate, Assurant P&C, as it is
considered important to the Assurant brand as a licensed credit
life and credit accident & health insurer. The credit insurance
business adds to overall product diversity for Assurant; however,
Assurant Lifestyle L&H primarily offers credit insurance
products to credit card related debt. The regulatory environment
remains favorable for the products offered by the group. AM Best
notes that Assurant remains a recognizable name in these
markets.
The FSR of A+ (Superior) and the Long-Term ICRs of “aa-”
(Superior) have been affirmed with stable outlooks for the
following P/C subsidiaries of Assurant, Inc.:
- American Bankers Insurance Company of Florida
- American Security Insurance Company
- Standard Guaranty Insurance Company
- Caribbean American Property Insurance Company
- Voyager Indemnity Insurance Company
- Virginia Surety Company, Inc.
- Reliable Lloyds Insurance Company
The following Short-Term IR has been affirmed:
Assurant, Inc.— -- to AMB-1+ (Strongest) on commercial paper
The following Long-Term IRs have been affirmed, with stable
outlooks:
Assurant, Inc.— -- “a-” (Excellent) on USD 300 million 4.90%
senior unsecured bonds, due 2028 -- “a-” (Excellent) on USD 350
million 3.70% senior unsecured bonds, due 2030 -- “a-” (Excellent)
on USD 475 million 6.75% senior unsecured bonds, due 2034 (USD 275
million outstanding) -- “bbb+” (Good) on USD 400 million 7.00%
subordinated bonds, due 2048 -- “bbb+” (Good) on USD 250 million
5.25% subordinated bonds, due 2061
The following indicative Long-Term IRs on securities available
under the shelf registration have been affirmed with stable
outlooks:
Assurant, Inc.— -- “a-” (Excellent) on senior unsecured --
“bbb+” (Good) on subordinated debt -- “bbb” (Good) on preferred
stock
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.
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