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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 02, 2015 04:08 PM (EDT)
A.M. Best has upgraded the issuer credit rating to "bb+" from "bb" and affirmed the financial strength rating of B (Fair) of BEST Life and Health Insurance Company (BEST Life) (Austin, TX). The outlook for the ratings is stable.
The rating upgrade reflects BEST Life's significantly improved operating results in 2014, a trend that has continued into 2015. The increase in earnings is largely attributable to favorable results from its dental line of business. The company reported premium growth in 2014 after several years of decline, which was mainly driven by its individual dental line. Furthermore, BEST Life has reported improved levels of risk-adjusted capital, which was partially driven by its stronger operational gains and lack of dividends up-streamed to its parent company, Pension Administrators Inc.
Offsetting factors include a concentration of premium and earnings in a single product line, which resulted when the company exited the major medical business and focused on dental. Additionally, BEST Life operates in the highly competitive dental market with numerous carriers vying for business.
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best's Ratings & Criteria Center.
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