AM Best Upgrades Issuer Credit Ratings from New Era Life Insurance Company and its subsidiaries


img

OLDWICK, NJ – () –AM the best has increased Long-Term Issuer Credit Ratings (Long-Term ICR) to “bbb +” from “bbb” and confirmed Financial Strength Rating (FSR) of B ++ (Good) from New Era Life Insurance Company and its wholly owned life insurance subsidiaries, New Era Life Insurance Company of the Midwest and Philadelphia American Life Insurance company. The outlook for the FSR has been adjusted to positive from stable, while the long-term outlook for ICR is positive. All companies are located in Houston, TX, collectively known as New Era Group.

The ratings reflect the strength of New Era Group’s balance sheet, which AM Best considers strong, as well as adequate business performance, limited company profile and appropriate corporate risk management.


The rating upgrades reflect the improved capital position and overall balance sheet strength of the group. New Era Group’s capital and surplus grew year on year and the group has seen significant increases in capital and surplus over the past five years, reflecting the group’s reliable and organic growth. New Era Group maintains a very high level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), for its insurance and investment risks. Softening the assessment of the group’s balance sheet strength is the relatively high concentration in mortgage loans concentrated in Texas, as well as a higher allocation to below investment grade bonds (mainly Class 3).

The positive outlook reflects New Era Group’s business profile as ratings could be positively impacted if the group’s business profile continues to improve by diversifying its product line and geographic footprint. New Era is geographically concentrated and accounts for a large percentage of its operations in Texas. As a niche company providing consumer-centric products, New Era Group has benefited from long-standing relationships with consumers and the loyalty of its agents, as evidenced by consistent premium growth.

This press release relates to credit ratings published on AM Best’s website. For all rating information related to the release and relevant disclosures, including details of the agency responsible for issuing each of the individual ratings referenced in this release, see AM Best’s Recent review activity web page. For more information on the uses and limitations of credit rating advice, see Best Credit Guide. For information on proper media use of Best’s Credit Ratings and AM Best press releases, please see Guide to Media – Proper Use of Best and AM Best Rating Action Press Releases Credit Ratings.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. The company, headquartered in the United States, does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com.

Copyright © 2021 by AM Best Rating Services, Inc. and / or its subsidiaries. ALL RIGHTS RESERVED.

This div height required for enabling the sticky sidebar