Press Release - JULY 13, 2018
A.M. Best Upgrades Issuer Credit Rating of Guarantee Trust Life Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - JULY 13, 2018
The ratings reflect GTL’s balance sheet strength assessment, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
GTL’s rating upgrade is attributed to its very strong risk-adjusted capital measures, its solid use of reinsurance to mitigate risk exposure and conservative investment strategies to maximize lower risk returns. The reported operating earnings trend has been favorable for several years. This trend was driven by its solid returns from its accident and health product lines; however, the consolidated premium trend has been flat following a loss of large producing agent in 2015. A.M. Best notes that GTL is working to grow sales through existing and new distribution channels. A.M. Best expects the favorable earnings trends to continue through the medium term as the company improves its product distribution through its developing relationships among various sales partnerships. GTL is a niche player in the supplemental life and health markets, offering various products aimed at the senior markets, and is one of the leaders in the rapidly growing hospital indemnity market. The company has some concentration of business geographically and is operating in the increasingly competitive senior marketplace.
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