AM Best Affirms Credit Ratings of Delphi Financial Group, Inc. and Its Subsidiaries.
ENPNewswire-November 18, 2021--AM Best Affirms Credit Ratings of Delphi Financial Group, Inc. and Its Subsidiaries
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Release date- 17112021 - AM Best Affirms Credit Ratings of Delphi Financial Group, Inc. and Its Subsidiaries.
AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'aa+' (Superior) of the life/health subsidiaries of Delphi Financial Group, Inc. (DFG) (Wilmington, DE): Reliance Standard Life Insurance Company (Schaumburg, IL) and First Reliance Standard Life Insurance Company (New York, NY) (together referred to as Reliance Standard), as well as DFG's property/casualty subsidiaries: Safety National Casualty Corporation, Safety Specialty Insurance Company (both domiciled in St. Louis, MO) and Safety First Insurance Company (Chicago, IL) (together referred to as Safety National). DFG is a direct subsidiary of Tokio Marine & Nichido Fire Insurance Co., Ltd., whose ultimate parent is Tokio Marine Holdings, Inc. (Tokio Marine), Japan's largest non-life insurance organization.
Concurrently, AM Best has affirmed the Long Term ICR of 'a+' (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IR) of DFG. Lastly, AM Best has affirmed the Long-Term IRs of 'aa+' (Superior) on the outstanding medium term notes issued under the funding agreement backed-securities (FABS) program of Reliance Standard Life Global Funding II. The outlook for these Credit Ratings (ratings) is stable. (Please see below for a detailed list of the Long-Term IRs.)
The ratings of Reliance Standard reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and very strong enterprise risk management (ERM). Reliance Standard maintains a very strong level of risk-adjusted capitalization and favorable operating results, despite some spread compression within its interest-sensitive annuity business. The ratings also consider Reliance Standard's very strong risk management capabilities, a reasonable level of financial and operating leverage and favorable interest coverage ratios at DFG, its intermediate holding company. Partially offsetting these positive rating factors are COVID-19-related pressures in the group life insurance segment, elevated levels of higher risk and less liquid assets within its general account investment portfolio, including commercial...
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