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OLDWICK, NJ – (BUSINESS WIRE) – AM Best has confirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) from Merit Life Insurance Co. (Merit) (Austin, TX). The outlook for these credit ratings is stable.
The ratings reflect the balance sheet strength of Merit, which AM Best rates as very strong, as well as the reasonable operational performance, the limited business profile and the appropriate risk management of the company.
Merit’s balance sheet strength is backed by the highest level of risk-adjusted capitalization, measured by Best’s capital adequacy ratio. Merit’s conditional deferred annuity product guarantees a lifelong payout of 5% per annum, based on the higher value of the contract holder’s investment portfolio account on the day of Issue or on the exercise date. Contract holders must have a client account with one of Merit’s partner wealth management firms and be in an available investment portfolio that Merit will accept for protection. The contractor’s protected investment portfolio is managed by the partner wealth management companies and administered according to fixed investment parameters agreed by Merit. Merit’s general investment account portfolio is expected to be diversified with favorable liquidity.
Merit’s operating performance has been assessed solely on the basis of the forecasts provided by Merit and includes assumptions about expenses and revenue generation. The projected returns are derived primarily from fees for protected assets and are subject to market fluctuations. The company recently started selling.
AM Best regards the business profile as limited due to the limited product offerings and distribution channels.
This press release relates to credit ratings published on the AM Best website. All rating information relating to the press release and relevant disclosures, including details of the individual rating entity referred to in this press release, can be found on the AM Best website for recent rating activity. For more information on the use and limitations of credit ratings, see Best’s Credit Ratings Guide. For information on how to properly use Best’s Credit Ratings, Best’s Preliminary Credit Ratings, and AM Best press releases, see the Best’s Ratings and Ratings Proper Use Guide.
AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. The company is headquartered in the United States and operates in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. More information is available at www.ambest.com.
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