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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 20, 2014 09:42 AM (EST)
A.M. Best has assigned a financial strength rating (FSR) of A- (Excellent) and an issuer credit rating (ICR) of "a-" to ShelterPoint Insurance Company (SPI). Concurrently, A.M. Best has affirmed the FSR of A- (Excellent) and the ICR of "a-" of ShelterPoint Life Insurance Company (ShelterPoint Life). ShelterPoint Life (formerly known as The First Rehabilitation Life Insurance Company of America) and its wholly-owned subsidiary, SPI, comprise the ShelterPoint family of companies headquartered in Great Neck, NY.
The group's ratings reflect its established niche in the statutory short-term disability market, continuing product diversification efforts, improved operating earnings and sound risk-adjusted capitalization. Offsetting rating factors include the group's current geographic and business profile concentrations, the potential regulatory concerns within the state of New York and the challenge of managing loss ratios within its core products.
ShelterPoint Life is one of the largest statutory short-term disability income carriers in New York based on policy count and written premiums. Although disability business continues to account for over three-quarters of its premium revenue, the group continues to expand its product offerings. In an effort to improve its premium and earnings diversification, the group has introduced several new products in recent years, including group term life, dental, vision, hospital cash, prescription discount cards and most recently, a fee-only employee assistance program. Additionally, the group has increased the number of independent agents and brokers marketing these new products to facilitate its growth strategy.
SPI, which has 48 state licenses, is expected to materially extend the group's geographic reach going forward and will be marketing a full suite of products. The business written by SPI will be fully reinsured to its affiliate, ShelterPoint Life. Further, the organization has explicitly committed to maintaining a strong level of risk-adjusted capitalization at SPI, which A.M. Best views favorably.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.