Oldwick, NJ–(business wire)–AM Best Standard Insurance Company (Portland, Oregon) and its affiliate, The Standard, have an A (Excellent) financial strength rating (FSR) and an “a+” (Excellent Long-Term ICR). confirmed. Life Insurance Company of New York (White Plains, NY), collectively known as Standard Insurance Group (The Standard). In addition, AM Best has confirmed that The Standard’s intermediate holding company, StanCorp Financial Group, Inc. (StanCorp Financial) (Portland, Oregon), has a long-term ICR of ‘bbb+’ (Good). The outlook for these credit ratings is stable.
At the same time, AM Best confirmed that Pacific Guardian Life Insurance Company Limited (Pacific Guardian) (Honolulu, Hawaii) has an FSR of A (excellent) and a long-term ICR of ‘a’ (excellent). The outlook for these ratings is stable.
The Standard rating reflects balance sheet strength and AM Best reflects its balance sheet strength, strong operating results, favorable business profile and good enterprise risk management (ERM) .
AM Best rates The Standard’s risk-adjusted capital as strong, as measured by Best’s Capital Adequacy Ratio (BCAR). Capital levels will continue to increase until 2020. However, while it dipped in 2021, it is projected to improve in 2022. The annual dividend supports StanCorp Financial’s debt coverage, all the way up to its ultimate parent, Meiji Yasuda Mutual Life Insurance Company (Meiji Yasuda Life), and has been paid out four or more times in his last five years. Year. Approximately two-fifths of The Standard’s invested assets are held in commercial mortgage loans concentrated on the West Coast. Standard is a direct underwriter of mortgages and has strong underwriting capabilities based on its long history as a loan originator. The mortgage portfolio is doing well right now.
Standard continues to report good operating results with recent double-digit premium growth and has recorded profitability trends with some volatility. This standard maintains good business diversification between death and morbidity products as well as asset management. AM Best says The Standard maintains a top 10 market position in group long-term disability, individual disability, group short-term disability and group life products. The standard has a comprehensive and well-developed ERM program. The organization maintains good governance structures, adequate risk management and controls.
Pacific Guardian’s ratings reflect AM Best’s strongest assessment of balance sheet strength, adequate operating performance, limited business profile and adequate ERM.
Pacific Guardian continues to maintain high levels of risk-adjusted capital. Historically, dividends have been consistently paid to the parent company and have been closely tied to the previous year’s net income, but AM Best expects dividends to be paid in both 2021 and his first six months of 2022. I point out that it didn’t. Nearly two-fifths of his invested assets are invested in his loans, commercial mortgages primarily underwritten by affiliate The Standard. The company currently has no outstanding debt. However, you can access credit lines for short-term liquidity needs. After several years of volatility in premiums, Pacific Guardian saw significant growth in 2022, driven by sales of its Multi-Year Guaranteed Annuities (MYGA) product. A net loss was reported in 2020 and 2021 after years of profitable operations. The recent net loss was due to a federal tax expense due to the depreciation of the policy management system added to taxable income. AM Best says it is one of Hawaii’s largest and most highly rated group life and group disability insurance companies and maintains its market-leading position in the temporary disability income (TDI) market. increase. Pacific Guardian will launch his MYGA product in 40 states at the end of 2021. The company also expanded its license to he 46 states and the District of Columbia.
Standard & Pacific Guardian’s ratings take into account the financial strength of its parent company, Meiji Yasuda Manufacturing, and the strategic role Standard & Pacific Guardian plays in Meiji Yasuda Manufacturing.
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