OLDWICK, N.J., Oct. 24, 2024–(BUSINESS WIRE)–AM Best raises Financial Strength Rating from A- (Excellent) to A (Excellent) and Long-Term Issuer Credit Rating to ‘a’ (Excellent) I raised it to . From Guaranty Trust Life Insurance Company (Guarantee Trust Life), Glenview, Illinois, with an “a-” (excellent) rating. Additionally, AM Best has revised the outlook of these credit ratings (ratings) from positive to stable.
This rating reflects the strength of Guaranty Trust Life’s balance sheet, which AM Best rates as the strongest, as well as its solid operating performance, limited business profile, and appropriate corporate risk management.
This rating upgrade reflects the strength of Guaranty Trust Life’s balance sheet, including financial flexibility, capital growth, and the company’s strongest level of risk-adjusted capital participation as measured by its Best Capital Adequacy Ratio (BCAR). Reflects maintenance of indicators. As profits increase into capital, the level of total risk-adjusted capital has improved, and the increase in capital has also exceeded the increase in net premiums written.
Guaranty Trust Life Inc. tends to maintain good performance over the long term, with substantial pre-tax net operating income. This was due to higher levels of net investment income and improved profitability in hospital coverage, home health care, short-term nursing care and underwriting. Home care segment. Additionally, the company reports strong profitability metrics with an average five-year return on equity of approximately 14% and approximately five-year return on earnings of more than 7%. Recent premium levels have generally increased by single-digit percentages year-over-year.
Partially offsetting factors include the concentration of Guaranty Trust Life’s premiums on hospital protection products (more than one-third of net premiums are derived from hospital protection products); , the highly competitive supplemental accident insurance, health insurance and life insurance markets in which the company operates.
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AM Best is a global credit rating agency, news publisher, and data analytics provider focused on the insurance industry. The company is headquartered in the United States, with offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City, and does business in more than 100 countries. For more information, please visit www.ambest.com.
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