OLDWICK, N.J.–(Business Wire)–
A.M. Best Co. has revised the outlook to negative from stable and affirmed the
financial strength rating of A- (Excellent) and issuer credit rating of “a-” of
Woman`s Life Insurance Society (Woman`s Life) (Port Huron, MI).
The rating outlook reflects Woman`s Life`s reduced operating earnings, lower
life insurance sales and modest business profile. Woman`s Life has recorded a
decline in operating earnings, including a loss in first quarter 2010.
Continuing declines in life insurance premium, spread compression and growth in
chapter development have contributed to the fraternal`s reduction in earnings.
The society`s recent net premium has been driven primarily by growth in fixed
annuities, which has led to some surplus strain.
The ratings continue to reflect Woman`s Life`s strong level of risk-adjusted
capital, low level of credit risk in its fixed income portfolio and its role as
a niche provider of services and insurance products to women. A.M. Best believes
that despite its modest earnings trends, Woman`s Life continues to maintain a
favorable capital level relative to its insurance and investment risks.
For Best`s Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.
A.M. Best Company
Raj Shah, 908-439-2200, ext. 5409
Stephen Irwin, 908-439-2200, ext. 5454
Rachelle Morrow, 908-439-2200, ext. 5378
Jim Peavy, 908-439-2200, ext. 5644
Copyright Business Wire 2010