CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - FEBRUARY 10, 2003 12:00 AM (EST)
A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Sage Life Assurance of America Inc (Wilmington, DE) and removed the rating from under review. The rating outlook is stable.
The rating reflects Sage Life's limited operating profile whereby no new business is accepted and A.M. Best's expectation that risk-adjusted capitalization will remain strong, as its current block of separate account annuity business runs off.
Relative to both A.M. Best's risk-based capital standards and the NAIC's risk-based capital measures, Sage Life's risk-adjusted capital position is strong and is sufficient to support the relatively low capital requirements of its variable annuity business. Moreover, assets supporting variable annuities are held in a separate account and are not available to support the general liabilities of the company.
The rating also considers Swiss Re Life & Health's implicit and explicit support as a minority shareholder and strategic partner. Additionally, Sage Life reinsures mortality risks and other contract guarantees with highly rated reinsurers.
Although the rating outlook is stable-reflecting A.M. Best's belief that no significant change in operations is expected-A.M. Best will closely monitor Sage Life and is prepared to re-evaluate the rating should any material change occur in its business profile.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.