Ratings Updates

Entries for September 2009

Insurer
AM Best
S & P
Moody’s
Fitch
ING Life & Ann
 
 
A1 to A1w-
 
Protective Life
 
    A+ to A

 

The ING companies (ING Life, Reliastar and Security Life of Denver) have been placed on the watch list with negative implications by Moody’s.  Also, of local interest, the Protective Life companies have been downgraded to A from A+ by Fitch.

The rating agencies remain under significant pressure for their performance during the financial crisis.  We will watch with interest how their approaches to the ratings process are modified moving forward.  Of particular interest will be their capital adequacy models which are expected to increase capital required, limiting the operating flexibility of the companies.  The ultimate impact may be continued increases in prices as have been occurring in the term insurance and the no-lapse guarantee universal life segments recently.
 
Action thoughts:  If you have clients considering term life or no-lapse UL, encourage them to proceed before further price increases are implemented.  If an objective opinion would help in the decision process,  please give us a call at 205.414.9955.