CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - JULY 12, 2017 11:25 AM (EDT)
A.M. Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of B (Fair) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “bb+” of Equitable Life & Casualty Insurance Company (Equitable Life) (Salt Lake City, UT). The outlook assigned these Credit Ratings is positive.
The rating affirmations and positive outlook follow the acquisition of Equitable Life by SILAC, LLC (SILAC) in April 2017. As a result of the acquisition, a new executive management team leads operations with a fresh strategic business plan. Concurrent with the acquisition, SILAC contributed Sterling Investors Life Insurance Company to Equitable Life as a wholly-owned subsidiary. In addition, SILAC has committed to financial and operational support of Equitable Life and to no debt or debt service being incurred on the part of Equitable Life. The business initiatives include maintaining the Equitable name and location in Utah, upgrading systems and platforms to improve efficiency and capacity, introducing modern and higher profit margin products, actively managing the risk and exposure of the long-term care block of business and strategically reallocating the investment portfolio. However, there may be challenges executing these initiatives.
Equitable Life will continue to face the challenges of managing a large closed block of long-term care business, high reinsurance leverage and a current dependence on the Medicare supplement product line.
This press release relates to Credit Ratings 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. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.