AM Best Places Credit Ratings of Some Assurant, Inc.’s Life Subsidiaries Under Review With Developing Implications

·3 min read

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.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Contacts

Jeffrey Lane
Senior Financial Analyst
+1 908 439 2200, ext. 5567
jeffrey.lane@ambest.com

Wayne Kaminski
Senior Financial Analyst
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wayne.kaminski@ambest.com

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Jim Peavy
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