AM Best Affirms Credit Ratings of Assurant, Inc.; Its Property/Casualty Subsidiaries; and Life/Health Subsidiaries
AM Best has affirmed the credit ratings of Assurant, Inc. (NYSE: AIZ) and its subsidiaries. The Financial Strength Rating (FSR) of A+ (Superior) and Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa-" (Superior) were affirmed for Assurant's property/casualty subsidiaries. The Long-Term ICR of "a-" (Excellent) was affirmed for Assurant, Inc. itself. For Assurant's credit and life/health subsidiaries, the FSR of A (Excellent) and Long-Term ICRs of "a" (Excellent) were affirmed.
The ratings reflect Assurant P&C's very strong balance sheet, strong operating performance, favorable business profile, and appropriate enterprise risk management. The company's risk-adjusted capitalization is at the strongest level, supported by very strong earnings power and positive cash flows. Assurant's operating performance benefits from its specialized niche businesses and earnings diversification.
AM Best ha confermato i rating creditizi di Assurant, Inc. (NYSE: AIZ) e delle sue filiali. Il Financial Strength Rating (FSR) di A+ (Superiore) e i Long-Term Issuer Credit Ratings (Long-Term ICR) di "aa-" (Superiore) sono stati confermati per le filiali di proprietà/eccedenze di Assurant. Il Long-Term ICR di "a-" (Eccellente) è stato confermato per Assurant, Inc. stessa. Per le filiali creditizie e vita/salute di Assurant, il FSR di A (Eccellente) e i Long-Term ICR di "a" (Eccellente) sono stati confermati.
I rating riflettono il bilancio molto solido di Assurant P&C, le forti performance operative, il profilo aziendale favorevole e una gestione adeguata del rischio d'impresa. La capitalizzazione corretta per il rischio della società è al livello più robusto, supportata da un'ottima capacità di guadagno e flussi di cassa positivi. Le performance operative di Assurant beneficiano delle sue attività specializzate in nicchia e della diversificazione dei guadagni.
AM Best ha confirmado las calificaciones crediticias de Assurant, Inc. (NYSE: AIZ) y sus subsidiarias. La calificación de Fortaleza Financiera (FSR) de A+ (Superior) y las Calificaciones de Crédito del Emisor a Largo Plazo (Long-Term ICR) de "aa-" (Superior) fueron confirmadas para las subsidiarias de propiedad/riesgo de Assurant. La Long-Term ICR de "a-" (Excelente) fue confirmada para Assurant, Inc. misma. Para las subsidiarias crediticias y de vida/salud de Assurant, la FSR de A (Excelente) y las Long-Term ICR de "a" (Excelente) fueron confirmadas.
Las calificaciones reflejan el muy fuerte balance general de Assurant P&C, un sólido rendimiento operativo, un perfil empresarial favorable y una adecuada gestión del riesgo empresarial. La capitalización ajustada al riesgo de la compañía está en el nivel más fuerte, respaldada por una muy fuerte capacidad de ganancias y flujos de efectivo positivos. El rendimiento operativo de Assurant se beneficia de sus negocios especializados en nichos y de la diversificación de ganancias.
AM Best는 Assurant, Inc.(NYSE: AIZ) 및 그 자회사의 신용 등급을 확인하였습니다. Assurant의 재산/사고 자회사에 대한 재무 건전성 등급(FSR) A+ (우수)와 장기 발신자 신용 등급(Long-Term ICR) "aa-" (우수)가 확인되었습니다. Assurant, Inc. 자체에 대해 "a-" (우수)의 장기 ICR이 확인되었습니다. Assurant의 신용 및 생명/건강 자회사의 경우 FSR은 A (우수)이며 장기 ICR은 "a" (우수)로 확인되었습니다.
이 평가는 Assurant P&C의 매우 강력한 자산 상태, 강력한 운영 성과, 유리한 비즈니스 프로필, 적절한 기업 위험 관리의 반영입니다. 회사의 위험 조정 자본화는 가장 강력한 수준에 있으며, 이는 매우 강력한 수익 능력과 긍정적인 현금 흐름에 의해 지원됩니다. Assurant의 운영 성과는 특화된 틈새 사업과 수익 다각화의 혜택을 받습니다.
AM Best a confirmé les notations de crédit d'Assurant, Inc. (NYSE: AIZ) et de ses filiales. La notation de solidité financière (FSR) de A+ (Supérieur) et les notations de crédit des émetteurs à long terme (Long-Term ICR) de "aa-" (Supérieur) ont été confirmées pour les filiales de biens/accidents d'Assurant. La Long-Term ICR de "a-" (Excellent) a été confirmée pour Assurant, Inc. elle-même. Pour les filiales de crédit et de vie/santé d'Assurant, le FSR de A (Excellent) et les Long-Term ICR de "a" (Excellent) ont été confirmés.
Les notations reflètent le très bon bilan d'Assurant P&C, la forte performance opérationnelle, le profil commercial favorable et la gestion adéquate des risques d'entreprise. La capitalisation ajustée au risque de l'entreprise se situe à son niveau le plus élevé, soutenue par une très forte capacité de bénéfices et des flux de trésorerie positifs. La performance opérationnelle d'Assurant bénéficie de ses activités spécialisées de niche et de la diversification des bénéfices.
AM Best hat die Kreditratings von Assurant, Inc. (NYSE: AIZ) und ihren Tochtergesellschaften bestätigt. Die Financial Strength Rating (FSR) von A+ (Überlegen) und die Long-Term Issuer Credit Ratings (Long-Term ICR) von "aa-" (Überlegen) wurden für die Sach-/Haftpflicht-Tochtergesellschaften von Assurant bestätigt. Die Long-Term ICR von "a-" (Ausgezeichnet) wurde für Assurant, Inc. selbst bestätigt. Für die Kredit- und Lebens-/Gesundheitsunternehmen von Assurant wurden das FSR von A (Ausgezeichnet) und die Long-Term ICR von "a" (Ausgezeichnet) bestätigt.
Die Ratings spiegeln die sehr starke Bilanz von Assurant P&C, die starke operative Leistung, das vorteilhafte Geschäftsprofil und das angemessene Unternehmensrisikomanagement wider. Die risikoadjustierte Kapitalisierung des Unternehmens befindet sich auf dem stärksten Niveau, unterstützt durch sehr starke Ertragskraft und positive Cashflows. Die operative Leistung von Assurant profitiert von seinen spezialisierten Nischenbereichen und der Diversifizierung der Erträge.
- AM Best affirmed Assurant's strong credit ratings, indicating financial stability
- Risk-adjusted capitalization at the strongest level, measured by Best's Capital Adequacy Ratio (BCAR)
- Very strong earnings power with relatively low volatility
- Positive cash flows and stable reserves
- Strong operating performance due to specialized niche businesses and earnings diversification
- Consistently outperforms peers and generates superior returns on capital
- Property catastrophe exposure, primarily from lender-placed homeowners' business in global housing
- Heavy reliance on high-quality third-party reinsurance to mitigate risk
Insights
AM Best's affirmation of Assurant's strong credit ratings is a positive indicator for the company's financial health. The A+ (Superior) rating for property/casualty subsidiaries and A (Excellent) for life/health subsidiaries reflect Assurant's robust balance sheet and strong operating performance. Key strengths include:
- Risk-adjusted capitalization at the "strongest" level
- Diversified earnings from global lifestyle and housing segments
- Effective use of high-quality reinsurance to mitigate catastrophe risk
These factors contribute to Assurant's ability to outperform peers and generate superior returns on capital. The stable outlook suggests confidence in Assurant's continued financial stability, which is important for investor trust and potential business growth.
Assurant's strong position in specialized niche markets is a key driver of its success. The company's strategy of partnering with market leaders in global lifestyle and housing segments has proven effective. This approach allows Assurant to:
- Maintain a favorable business profile
- Generate steady profits from diverse sources
- Mitigate risks associated with property catastrophe exposure
The company's focus on credit insurance products through its life/health subsidiaries adds to its product diversity. However, investors should note the regulatory environment's impact on these products. Assurant's ability to navigate regulatory changes while maintaining its market position will be important for long-term success.
Assurant's enterprise risk management (ERM) is deemed "appropriate" by AM Best, which is important given the company's exposure to property catastrophe risks. Key risk management strategies include:
- Heavy reliance on high-quality third-party reinsurance
- Diversification of earnings across global lifestyle and housing segments
- Maintenance of positive cash flows and stable reserves
These strategies effectively mitigate catastrophe risk to align with the company's risk appetite. However, investors should monitor Assurant's ongoing ability to secure favorable reinsurance terms, as changes could impact profitability. The company's consistent outperformance of peers suggests its risk management approach is well-calibrated to its business model.
The ratings of Assurant P&C reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Assurant P&C’s very strong balance sheet strength is supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and its very strong earnings power with relatively low volatility (a significant portion of which is derived from its low-risk businesses, particularly its business in the global lifestyle segment). The group’s favorable balance sheet position is further bolstered by its positive cash flows and stable reserves. This is partially offset by Assurant’s property catastrophe exposure, which stems mostly from its lender placed homeowners’ business in global housing, and its heavy reliance on high-quality third-party reinsurance that is effective in mitigating this risk to a level more commensurate with the group’s overall risk appetite. Assurant’s operating performance is a byproduct of its highly specialized niche businesses, earnings diversification and management’s strategy to partner with market leaders in both its global lifestyle and global housing segments. Both segments are steady contributors to Assurant’s profits. As a result, Assurant P&C consistently outperforms its peers and generates superior returns on capital.
The ratings of Assurant Lifestyle L&H reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate ERM. Assurant Lifestyle also receives one level of rating enhancement from its affiliate, Assurant P&C, as it is considered important to the Assurant brand as a licensed credit life and credit accident & health insurer. The credit insurance business adds to overall product diversity for Assurant; however, Assurant Lifestyle L&H primarily offers credit insurance products to credit card related debt. The regulatory environment remains favorable for the products offered by the group. AM Best notes that Assurant remains a recognizable name in these markets.
The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) have been affirmed with stable outlooks for the following P/C subsidiaries of Assurant, Inc.:
-
American Bankers Insurance Company of
Florida - American Security Insurance Company
- Standard Guaranty Insurance Company
- Caribbean American Property Insurance Company
- Voyager Indemnity Insurance Company
- Virginia Surety Company, Inc.
- Reliable Lloyds Insurance Company
The following Short-Term IR has been affirmed:
Assurant, Inc.—
-- to AMB-1+ (Strongest) on commercial paper
The following Long-Term IRs have been affirmed, with stable outlooks:
Assurant, Inc.—
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “bbb+” (Good) on
-- “bbb+” (Good) on
The following indicative Long-Term IRs on securities available under the shelf registration have been affirmed with stable outlooks:
Assurant, Inc.—
-- “a-” (Excellent) on senior unsecured
-- “bbb+” (Good) on subordinated debt
-- “bbb” (Good) on preferred stock
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in
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Jieqiu Fan
Associate Director
+1 908 882 1762
jieqiu.fan@ambest.com
Daniel J. Ryan
Senior Director
+1 908 882 2290
daniel.ryan@ambest.com
Michael Sweeney
Financial Analyst
+1 908 882 2384
michael.sweeney@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com
Source: AM Best
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