Primerica & Subsidiaries' Ratings Retained By AM Best
Zacks Investment Research | Sep 26, 2019 12:24AM ET
Primerica’s (NYSE:PRI) long-term issuer credit rating (Long-Term ICR) of “a-” has been retained by AM Best. Concurrently, the rating giant reiterated the Financial Strength Rating of A+ (Superior) and the Long-Term ICR of “aa-” of Primerica Life Insurance Company and its affiliates, National Benefit Life Insurance Company and Primerica Life Insurance Company of Canada. Outlook of these ratings is stable.
The rating affirmation reflects Primerica Life’s position as one of the largest writers of term life insurance in the United States, sturdy balance sheet (solid risk-adjusted capitalization, adequate liquidity, strong financial leverage and interest coverage ratios), sustained solid operational results, favorable business profile and apt enterprise risk management.
AM Best noted that the company has been generating adequate GAAP and statutory net income, benefiting from reinsurance transaction and delivering increasing direct premiums. The company has also been benefiting from non-insurance revenues, which contribute significant portion of overall GAAP revenues through the sale of mutual funds and other savings products and distribution of other manufacturers’ life and annuity products.
However, focus on only term life products somewhat weighs on the positives.
Shares of Primerica have rallied 32% year to date, outperforming the the complete list of today’s Zacks #1 Rank stocks here .
Health Insurance Innovations operates as a cloud-based technology platform and distributor of individual and family health insurance plans, and supplemental products in the United States. The company delivered positive surprise of 104.00% in the last reported quarter. The company sports a Zacks Rank #1.
American Equity Investment provides life insurance products and services in the United States. The company delivered positive surprise of 14.74% in the last reported quarter. The stock carries Zacks Rank #2.
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