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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 23, 2019 03:59 PM (EDT)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of the insurance subsidiaries of American Enterprise Group, Inc. (American Enterprise). The subsidiaries are American Republic Insurance Company, American Republic Corp Insurance Company, Medico Corp Life Insurance Company, Medico Insurance Company, Medico Life and Health Insurance Company and Great Western Insurance Company (Great Western) (Ogden, UT). All companies are domiciled in Des Moines, IA, unless otherwise specified.
The ratings of the insurance subsidiaries of American Enterprise reflect the group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The revised outlooks to positive reflect a continued strengthening in the group’s balance sheet strength, including maintenance of strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). American Enterprise has been integrating the management of Great Western’s investment portfolio and balance sheet over the last year since it acquired the company. With the addition of Great Western’s life business, there has been an increased focus by the organization on reserves and asset-liability matching for all lines of business. Furthermore, American Enterprise’s core health business continues to produce favorable operating results, which contribute to overall capital growth through retained earnings. The group’s balance sheet previously had been impacted by unfavorable balance sheet factors, including reserve charges and an elevated allocation to higher risk assets at Great Western prior to the company coming under the management of American Enterprise. Continued improvement of balance sheet metrics could result in positive rating action.
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 Understanding 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.
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