AM Best has placed under review with developing implications the Financial Strength Ratings (FSR) of A- (Excellent) and the Long Term Issuer Credit Ratings (Long-Term ICR) of "a-" of American Memorial Life Insurance Company (American Memorial) (Rapid City, SD) and Assurant Life of Canada (ALOC) (Toronto, Canada). Concurrently, AM Best has placed under review with developing implications the FSR of B++ (Good) and the Long Term ICRs of "bbb" of Union Security Insurance Company (USIC) (Topeka, KS) and Union Security Life Insurance Company of New York (USLICNY) (Fayetteville, NY). These companies are subsidiaries of Assurant, Inc. (Assurant) [NYSE: AIZ].
The under review with developing implications status reflects Assurant’s Oct. 28, 2020 announcement that it has initiated a process to evaluate strategic alternatives, including a potential sale of its preneed business, which provides pre-funded funeral insurance and related services. This will allow the organization to focus on opportunities within its broader lifestyle and housing portfolio. The organization is a leader in the pre-funded funeral insurance and other preneed solutions in the United States. In addition, there is an exclusive relationship with Service Corporation International, the largest funeral provider in North America, based on total revenue. AM Best will continue to monitor these companies and their ratings will remain under review pending the conclusion of the process, which may result in the sale of the business.
American Memorial and Assurant Life of Canada were previously core U.S. and Canadian life/health subsidiaries of Assurant, which comprise the organization’s current writers and main entities of Assurant’s global preneed business segment. Also included in this segment is USIC; however, this entity holds a closed block of preneed business in addition to providing business through its lifestyle segment.
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