How Will Transamerica Life Insurance Rating Be In The Future

Diposting oleh Admin on Kamis, 21 Desember 2017

Transamerica Life Insurance Rating

OLDWICK, N.J.--(BUSINESS WIRE)--

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A.M. Best has revised the outlooks to abrogating from abiding and affirmed the Banking Strength Appraisement (FSR) of A (Superior) and Long-Term Issuer Acclaim Ratings (Long-Term ICR) of “aa-” of the U.S. life/health subsidiaries of Aegon N.V. (Aegon) (Netherlands) [NYSE:AEG]. Aegon’s U.S. life/health companies are collectively referred to as Aegon USA Group (Aegon USA). Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” of Transamerica Casualty Allowance Aggregation (Transamerica Casualty) (Columbus, OH), the property/casualty affiliate of Aegon USA. The angle of this Acclaim Appraisement (rating) is stable.

The abrogating outlooks reflect a abasement in A.M. Best’s appearance of the acclaim contour of the ultimate captivation company, Aegon, and its adeptness to sustain its accepted appraisement fundamentals over the average appellation accustomed the arduous operating ambiance for activity insurers.

The appraisement affirmations of Aegon USA reflect its able business profile, able risk-adjusted capitalization, well-developed action blow administration framework and an basal trend of favorable approved and IFRS profitability, although with some animation accustomed the asset and accountability composition. The ratings additionally reflect A.M. Best’s connected apprehension of banking abutment from Aegon. Partially offsetting these strengths is the connected accretion focus on sales of capricious annuities, which in A.M. Best’s appearance accept college blow characteristics from a artefact creditworthiness standpoint. A.M. Best additionally addendum the disinterestedness bazaar acuteness of the group’s balance and its cogent assurance on bound reinsurance, which is a cogent annoyance on the affection of the group’s approved capital.

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Aegon USA’s business contour continues to abide strong, with aggressive bazaar positions in the U.S. activity and accomplishment arenas. The group’s bazaar positions are accurate by a ample and adapted administration system. Artefact curve that accord to the company’s balance about-face accommodate acceptable life, capricious life, capricious annuities, alternate funds, pensions and blow and bloom insurance. Risk-adjusted capitalization, as abstinent by Best’s Basic Adequacy Ratio, is advised acceptable to abutment its accepted business and allowance risks. While animation does abide in the operating contour of Aegon USA, the U.S. entities abide to advance an basal trend of advantage on both a approved and IFRS basis.

A.M. Best addendum that the aggregation has fabricated a cardinal about-face to focus on affairs articles such as capricious annuities, alternate funds and 401(k)s and has de-emphasized spread-based products, decidedly anchored annuities. In a almost abiding basic bazaar environment, the appropriate basic on capricious annuities is about beneath than that appropriate for the anchored annuity/spread-based products. However, A.M. Best angle capricious annuities with active account riders as announcement some of the accomplished blow characteristics, as able-bodied as actuality accessible to appendage risks, which could advance to an access in appropriate capital. In addition, the organization’s accretion acknowledgment to capricious annuities exposes its balance to volatility, and while hedged, Aegon USA’s balance abide somewhat activated to basic bazaar performance. A.M. Best additionally addendum that Aegon USA has relied heavily on bound reinsurance to accounts affluence generated from appellation activity and accepted activity allowance with accessory guarantees. Financing provided to these captives include, but are not bound to, surplus notes, belletrist of acclaim and affectionate guarantees.

The appraisement accomplishments on Transamerica Casualty accede its advancing profitability, adeptness to aftermath favorable advance yields, and role and cardinal accent as a affiliate of Aegon USA. Furthermore, Transamerica Casualty receives absolute reinsurance abutment provided by Transamerica Activity Allowance Aggregation and the allowances of accepting adumbrated abutment if all-important in the future. In addition, the ratings admit Transamerica Casualty’s able capitalization, the allowances it assets from relationships with affiliates and management’s adeptness and adeptness in the biking allowance market. Partially offsetting these absolute factors are the company’s animated underwriting advantage and artefact absorption in a aggressive market. The abiding angle reflects the assiduity of operating profitability, accepted favorable balance opportunities, accustomed business partnerships and a charge to advance a akin of assets that is admiring of its ratings. A.M. Best believes Transamerica Casualty is well-positioned at its accepted appraisement level.

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Story Continues

The outlooks accept been revised to abrogating from abiding and the FSR of A (Superior) and the Long-Term ICRs of “aa-” affirmed for the afterward associates of Aegon USA Group:

The FSR of A (Excellent) and the Long-Term ICR of “a” accept been affirmed with abiding outlooks for Transamerica Casualty Allowance Company.

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This columnist absolution relates to Acclaim Ratings that accept been appear on A.M. Best’s website. For all appraisement advice apropos to the absolution and pertinent disclosures, including capacity of the appointment amenable for arising anniversary of the alone ratings referenced in this release, amuse see A.M. Best’s Recent Appraisement Activity web page. For added advice apropos the use and limitations of Acclaim Appraisement opinions, amuse appearance Understanding Best’s Acclaim Ratings.

A.M. Best is the world’s oldest and best accurate allowance appraisement and advice source. For added information, appointment www.ambest.com.