Core Viewpoint - AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) for American Southern Insurance Company and its subsidiary, as well as the FSR of A- (Excellent) for Bankers Fidelity Life Insurance Company, indicating strong financial health and stability across these companies [1][5]. Group 1: American Southern Group - The ratings reflect American Southern Group's very strong balance sheet strength, adequate operating performance, neutral business profile, and appropriate enterprise risk management (ERM) [2]. - The group's balance sheet strength is supported by the strongest level of risk-adjusted capitalization, with an adjusted debt-to-capital ratio of 22.9% as of September 30, 2023, and sufficient financial flexibility [3]. - Operating profitability has been historically positive, driven by underwriting income and net investment income, although underwriting results declined in the first nine months of 2023 due to increased claims in auto liability and general liability lines [4]. Group 2: Bankers Fidelity Life Insurance Group (BFLIG) - BFLIG's ratings reflect very strong balance sheet strength, marginal operating performance, neutral business profile, and appropriate ERM [5]. - The organization maintains the strongest level of risk-adjusted capitalization for its insurance and investment risks, supported by capital contributions from its parent company [6]. - Operating performance has fluctuated, particularly in the Medicare supplement segment, but has trended favorably since 2022 due to corrective measures such as rate increases and diversification into lower-risk products [6].
AM Best Affirms Credit Ratings of Atlantic American Corporation and Its Subsidiaries