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Insurance ratings actions: A.M. Best upgrades Kemper, subsidiaries

S&P Global Market Intelligence compiles ratings actions in the insurance space daily through 5 p.m. ET. Actions after 5 p.m. ET will be included in the following day's roundup.

U.S. and Canada

A.M. Best upgraded the long-term issuer credit ratings to "bbb" from "bbb-" of Kemper Corp. and Infinity Property & Casualty Corp.

The rating agency also upgraded the financial strength ratings to A from A- and the long-term issuer credit ratings to "a" from "a-" of Kemper's property and casualty subsidiaries and affiliated insurance companies.

The entities are Trinity Universal Insurance Co., Alpha Property & Casualty Insurance Co., Capitol County Mutual Fire Insurance Co., Charter Indemnity Co., Financial Indemnity Co., Infinity Insurance Co., Infinity Assurance Insurance Co., Infinity Auto Insurance Co., Infinity Casualty Insurance Co., Infinity Indemnity Insurance Co., Infinity Preferred Insurance Co., Infinity Safeguard Insurance Co., Infinity Security Insurance Co., Infinity Standard Insurance Co., Infinity County Mutual Insurance Co., Infinity Select Insurance Co., Kemper Independence Insurance Co., Merastar Insurance Co., Mutual Savings Fire Insurance Co., Kemper Financial Indemnity Co., Old Reliable Casualty Co., Response Insurance Co., Response Worldwide Direct Auto Insurance Co., Response Worldwide Insurance Co., Union National Fire Insurance Co., United Casualty Insurance Co. of America, Unitrin Advantage Insurance Co., Unitrin Auto and Home Insurance Co., Unitrin County Mutual Insurance Co., Unitrin Direct Insurance Co., Unitrin Direct Property & Casualty Co., Unitrin Preferred Insurance Co., Unitrin Safeguard Insurance Co., Valley Property and Casualty Insurance Co. and Warner Insurance Co.

Concurrently, the agency upgraded the financial strength ratings to A from A- and the long-term issuer credit ratings to "a" from "a-" of Kemper's life and health subsidiaries, Mutual Savings Life Insurance Co., United Insurance Co. of America, Reliable Life Insurance Co. (MO), Reserve National Insurance Co. and Union National Life Insurance Co.

The outlooks of the credit ratings were revised to stable from positive, reflecting A.M. Best's expectation that the rated insurance operations' balance sheet strength will continue to be at the strongest assessment level, supported by the strongest level of risk-adjusted capitalization.

The ratings of Kemper's property and casualty subsidiaries reflect the group's balance sheet strength, which A.M. Best categorizes as very strongest, and its adequate operating performance, neutral business profile and appropriate enterprise risk management. The upgrades recognize that the group has consistently maintained risk-adjusted capitalization measuring at the strongest level in recent years, even while paying significant shareholder dividends.

The ratings of Kemper's life and health subsidiaries reflect the group's balance sheet strength, which A.M. Best categorizes as strongest, and its adequate operating performance, neutral business profile and appropriate enterprise risk management.

In upgrading ratings, the agency took into account the life and health group's risk-adjusted capital position, which is at the strongest assessment level, its favorable capital to liability ratio, and its role as a consistent source of earnings due to its profitable operations.

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A.M. Best withdrew the financial strength rating of A+ and the long-term issuer credit rating of "aa-" of Catlin Indemnity Co.

The action follows Catlin's acquisition by Root Inc. and Root Stockholdings Inc. from XL Bermuda Ltd.

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A.M. Best affirmed the long-term issuer credit rating of "bbb-" and the long-term issue credit rating of CNO Financial Group Inc.

The rating agency also affirmed the A- financial strength ratings and the "a-" long-term issuer credit ratings of CNO Financial's life/health subsidiaries, Bankers Life & Casualty Co., Colonial Penn Life Insurance Co., Bankers Conseco Life Insurance Co. and Washington National Insurance Co.

The outlooks were revised to positive from stable, recognizing the group's favorable trends and absolute level of earnings. The revision also reflects good core trends on premiums and investment income.

The ratings reflect the group's balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

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A.M. Best assigned a financial strength rating of A- and a long-term issuer credit rating of "a-" to Gray Indemnity Co. The outlook assigned to the credit ratings is stable.

Concurrently, the agency affirmed the financial strength ratings of A- and the long-term issuer credit ratings of "a-" of Gray Insurance Co., Gray Surplus Lines Insurance Co. and Gray Casualty & Surety Co. The outlook of the ratings is stable.

The ratings reflect the group's balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings of Gray Casualty & Surety reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

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Fitch Ratings affirmed the A+ long-term issuer default rating, F1+ short-term issuer default rating and the AA- insurer financial strength rating of Pacific LifeCorp. subsidiary Pacific Life Insurance Co.

The agency also affirmed the AA- insurer financial strength ratings of subsidiaries Pacific Life Re Ltd. and Pacific Life & Annuity Co. and the A long-term issuer default rating of Pacific LifeCorp.

The outlook is stable.

Pacific LifeCorp.'s ratings are based on the company's diverse business profile, extremely strong statutory capitalization and strong earnings, investment management and liquidity.

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Moody's affirmed the Aa3 insurance financial strength ratings of Massachusetts Mutual Life Insurance Co. and its subsidiaries, MML Bay State Life Insurance Co. and C.M. Life Insurance Co.

The outlook on MassMutual and its affiliates remains stable.

The ratings actions follow American Financial Group Inc.'s announcement that it has agreed to sell its annuity business to MassMutual for $3.5 billion in cash.

The ratings action and stable outlook reflect MassMutual's position among U.S. providers of life insurance and annuity products, with a top rank in the market for participating whole life insurance.

Europe

A.M. Best affirmed the financial strength rating of A- and the long-term issuer credit rating of "a-" of Swedish Club. The outlook of the credit ratings is stable.

The ratings reflect Swedish Club's balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

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S&P Global Ratings affirmed the AA- issuer credit and financial strength ratings of Covéa Coopérations, MMA Vie SA, MMA IARD SA, MAAF Vie SA and GMF Vie SA.

Covéa Life Ltd.'s and Covea Insurance PLC's AA- financial strength ratings were also affirmed.

The outlook is stable, reflecting the agency's projection that the group will continue to have "excellent and organically increasing" capital buffers. The agency also expects the group to weather the impact of the COVID-19 pandemic, as well as the negative effects of changing regulation and tough competition in the French property and casualty market.

Asia-Pacific

A.M. Best affirmed the B++ financial strength rating and the "bbb" long-term issuer credit rating of Vietnam-based Post & Telecommunication Joint Stock Insurance Corp. The outlook is stable.

The ratings reflect Post & Telecommunication Joint Stock's balance sheet strength, which A.M. Best categorizes as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

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Fitch affirmed the A+(idn) national insurer financial strength rating of PT Tugu Reasuransi Indonesia. The outlook is stable.

The ratings reflect the company's satisfactory capitalization, moderate business profile and manageable but volatile underwriting performance. The ratings also consider the company's conservative investment risk profile and satisfactory catastrophe risk management in the catastrophe-prone Indonesian market.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.

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