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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 10, 2016 11:08 AM (EST)
A.M. Best has placed under review with negative implications the financial strength rating of B++ (Good) and the issuer credit rating of “bbb+” of Germania Life Insurance Company (Germania Life) (Brenham, TX).
The under review status reflects a material charge against capital, related to reserve adjustments that Germania Life’s parent, Germania Farm Mutual Insurance Association, intends to fund retroactively to year-end 2015.
In addition to the reserve charge, the company is currently reviewing its actuarial modeling to determine if changes are needed related to pricing and/or additional reserve increases that could significantly impact Germania Life’s business model. As a result, the ratings will remain under review until the parent has funded the capital shortfall and A.M. Best receives more information from the company’s management team related to these matters.
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 see A.M. Best’s Recent Rating Activity web page.
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