Fitch Ratings has affirmed the 'A+' insurer financial
strength rating of Liberty Life Insurance Company (LLIC), formerly
named Business Men's Assurance Company of America (BMA). The Rating
Outlook is Stable.
Today's affirmation follows the June 30, 2006, merger of BMA and its former parent, Liberty Life Insurance Company (Old), as well as Fitch's review of the operating and financial profile of the combined company. As a result of the merger, the former BMA adopted its former parent's name. The combined company will now operate under the RBC Insurance brand, reflecting its relationship with its ultimate parent, Royal Bank of Canada (RBC).
LLIC's rating is supported by its strong risk-adjusted capital position, conservative asset profile, as well as the strength of its parent, RBC. At year-end 2005, LLIC reported a risk-based capital ratio of 389% of the company action level, which Fitch considers to be relatively strong. Although there are no explicit support agreements in place between LLIC and RBC, Fitch believes that LLIC benefits not only from its ultimate parent's capital resources but also from administrative support, risk management expertise and distribution opportunities.
Fitch's rating on LLIC also considers the company's limited scale in the United States, relatively narrow -- albeit improved product profile and its current modest competitive position in the life insurance and asset accumulation arena. During 2005, the combined company's total statutory premium income amounted to $564 million. Prior to the merger, LLIC's product profile consisted almost exclusively of individual variable-life and both fixed- and variable-annuity products. On a combined basis, LLIC's product profile will now also include whole life, term life, universal life, critical illness and cancer expense in the U.S.
Greenville, South Carolina-based LLIC was established in 1905. At March 31, 2006, the combined company reported total admitted assets of $3.7 billion and capital and surplus of $275 million.
Fitch affirms the following rating with a Stable Outlook:
Liberty Life Insurance Company (formerly Business Men's Assurance Company of America)
-- Insurer financial strength at 'A+'.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Today's affirmation follows the June 30, 2006, merger of BMA and its former parent, Liberty Life Insurance Company (Old), as well as Fitch's review of the operating and financial profile of the combined company. As a result of the merger, the former BMA adopted its former parent's name. The combined company will now operate under the RBC Insurance brand, reflecting its relationship with its ultimate parent, Royal Bank of Canada (RBC).
LLIC's rating is supported by its strong risk-adjusted capital position, conservative asset profile, as well as the strength of its parent, RBC. At year-end 2005, LLIC reported a risk-based capital ratio of 389% of the company action level, which Fitch considers to be relatively strong. Although there are no explicit support agreements in place between LLIC and RBC, Fitch believes that LLIC benefits not only from its ultimate parent's capital resources but also from administrative support, risk management expertise and distribution opportunities.
Fitch's rating on LLIC also considers the company's limited scale in the United States, relatively narrow -- albeit improved product profile and its current modest competitive position in the life insurance and asset accumulation arena. During 2005, the combined company's total statutory premium income amounted to $564 million. Prior to the merger, LLIC's product profile consisted almost exclusively of individual variable-life and both fixed- and variable-annuity products. On a combined basis, LLIC's product profile will now also include whole life, term life, universal life, critical illness and cancer expense in the U.S.
Greenville, South Carolina-based LLIC was established in 1905. At March 31, 2006, the combined company reported total admitted assets of $3.7 billion and capital and surplus of $275 million.
Fitch affirms the following rating with a Stable Outlook:
Liberty Life Insurance Company (formerly Business Men's Assurance Company of America)
-- Insurer financial strength at 'A+'.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.