AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a+” (Excellent) of Ameritas Life Insurance Corp. (Lincoln, NE) and Ameritas Life Insurance Corp. of New York (New York, NY). These insurance entities comprise the life/health operations of Ameritas Mutual Holding Company (all companies are collectively referred to as Ameritas). Concurrently, AM Best has affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “a-” (Excellent) on the group’s surplus notes (see below for details of the Long-Term IR). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Ameritas’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.
Ameritas’ risk-adjusted capitalization level is in the strongest category, as measured by Best’s Capital Adequacy Ratio (BCAR), and is supported by favorable financial flexibility and liquidity. However, AM Best notes that the company had been increasing allocations to NAIC-2 class bonds and less liquid private placement fixed-income securities over the past several years, while maintaining a material allocation to mortgage loans, though allocations to all these asset classes remained stable in 2021.
Ameritas has reported favorable earnings on a statutory and GAAP basis in recent years, benefiting from a diverse product portfolio covering life, annuity, and accident and health products on an individual and group basis. There has been downward pressure on interest spreads on annuity products in the low interest rate environment.
Ameritas has maintained a market-leading position in group dental sales and continues to have strong sales of fixed-indexed annuities in recent years. Ameritas has demonstrated appropriate risk management capabilities and has enhanced its risk modeling capabilities.
The following Long-Term IR has been affirmed with a stable outlook:
The Union Central Life Insurance Company (merged into Ameritas Life Insurance Corp. effective July 1, 2014)—
— “a-” (Excellent) on $50 million 8.20% surplus grades, due 2026
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