AM Best Affirms Credit Ratings of American National Insurance Company and Its Subsidiaries
November 19 2020 - 2:46PM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR)
of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term
ICR) of “a+” of American National Insurance Company (ANICO) and its
life/health subsidiaries, American National Life Insurance Company
of Texas (ANTEX), American National Life Insurance Company of New
York (ANICONY) (Glenmont, NY) and Standard Life and Accident
Insurance Company (SLAICO). These companies are referred to
collectively as the American National Group (ANG). Concurrently, AM
Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of
“a” for Garden State Life Insurance Company (GSL).
In addition, AM Best has affirmed the FSR of A (Excellent) and
the Long-Term ICRs of “a+” of American National Property and
Casualty Company (Springfield, MO), and its subsidiaries, American
National General Insurance Company (Springfield, MO); ANPAC
Louisiana Insurance Company (Baton Rouge, LA); American National
Lloyds Insurance Company; Pacific Property and Casualty Company
(San Jose, CA); and its affiliates, American National County Mutual
Insurance Company, Farm Family Casualty Insurance Company and
United Farm Family Insurance Company (both domiciled in Glenmont,
NY). These entities are all considered part of American National
Property & Casualty Group (ANPAC Group) due to their strategic
importance. These companies are property/casualty subsidiaries of
their ultimate parent, ANICO, which is a subsidiary of American
National Group, Inc. [NASDAQ: ANAT].
The outlook of these Credit Ratings (ratings) is stable. All the
above companies are headquartered in Galveston, TX, unless
otherwise noted.
The ratings of ANG reflect its balance sheet strength, which AM
Best categorizes as strongest, as well as its adequate operating
performance, favorable business profile and appropriate enterprise
risk management (ERM). ANG continues to report the strongest level
of risk-adjusted capitalization, as measured by Best’s Capital
Adequacy Ratio (BCAR), despite the challenging environment.
Additionally, the group’s investment portfolio continues to perform
well, though AM Best notes that the company maintains a
higher-than-average allocation to commercial mortgage loans. ANG’s
delinquencies tied to these loans were minimal through the first
three quarters of 2020. The portfolio has produced a steady stream
of net investment income that has bolstered operating results.
ANG’s diverse product portfolio and distribution has generated
profitable operating gains, albeit muted more recently, impacted by
new business strain and the low interest rate environment.
The ratings of ANPAC Group reflect its balance sheet strength,
which AM Best categorizes as strongest, as well as its adequate
operating performance, neutral business profile and appropriate
ERM. The group continues to maintain the strongest BCAR, as well as
more-than-adequate liquidity and invested assets of good credit
quality. ANPAC Group’s consistent operating earnings reflect the
effectiveness of management and the group’s adequate reinsurance
protection during the significant uptick in catastrophic events in
2020. While the company competes with significantly larger
carriers, it has proven its strength in core markets, reporting
generally favorable premiums growth year over year. ANPAC Group’s
ratings also reflect the support if its ultimate parent, ANICO.
The ratings of GSL reflect its balance sheet strength, which AM
Best categorizes as strongest, as well as its adequate operating
performance, limited business profile and appropriate ERM. The
company began marketing Medicare Supplement policies in late 2019,
and has reported modest premium growth. GSL is consistently
profitable and benefits from the administration and risk management
of the organization.
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 New York, London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Kate Steffanelli Senior Financial Analyst +1
908 439 2200, ext. 5063 kate.steffanelli@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Robert Raber Associate Director +1 908 439
2200, ext. 5696 robert.raber@ambest.com
Jim Peavy Director, Communications +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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