AM Best Places Credit Ratings of Standard Security Life Insurance Company of New York Under Review With Positive Implications
OLDWICK, N.J.--(BUSINESS WIRE)--Apr 19, 2021--
AM Best has placed under review with positive implications the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Standard Security Life Insurance Company of New York (SSL) (New York, NY). SSL is a subsidiary of Independence Holding Company (IHC) (headquartered in Stamford, CT) [NYSE: IHC]; the ratings of IHC and its other insurance subsidiaries remain unchanged.
This rating action follows the announcement that IHC has signed a definitive agreement to sell SSL to Reliance Standard Life Insurance Company (RSL), a subsidiary of Tokio Marine Holdings Inc., for approximately $180 million.
At year-end 2020, SSL had statutory capital and surplus totaling $64.6 million and net premiums written of $114.6 million. Under the terms of the agreement, at the close of the transaction, IHC will transfer SSL to RSL with $53 million of capital; any excess amount will be returned to IHC as a dividend. SSL’s primary operations consist of New York statutory disability benefit law (DBL) business and Paid Family Leave (PFL), and will be used to fill out RSL’s existing group insurance operations and market share in New York. It is anticipated that some non-related annuity and other accident & health reserves will be co-insured out prior to the closing.
The ratings will remain under review while AM Best discusses the details of the acquisition with company management and until the transaction closes. The companies are looking to complete the transaction in the third quarter of 2021, following regulatory approval.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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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KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES
SOURCE: AM Best
Copyright Business Wire 2021.
PUB: 04/19/2021 04:08 PM/DISC: 04/19/2021 04:08 PM