Recently, A.M. Best Co. affirmed the credit ratings of various
). The rating agency affirmed the financial strength rating (FSR)
and issuer credit ratings (ICR) of Aegon USA Group at "A+" and
"aa-," respectively. Aegon USA Group refers to all the American
life and health subsidiaries of Aegon.
A.M. Best also affirmed the "aa-" debt rating on the
outstanding notes of Monumental Life Insurance Company, a part of
the Aegon USA Group. Further, the rating agency affirmed the FSR
and ICR of the property and casualty insurance subsidiary -
Stonebridge Casualty Insurance Company - at "A" and "aa-,"
Additionally, A.M. Best affirmed the FSR and ICR of a
wholly-owned subsidiary Transamerica Life Canada at "A-" and
"a-," respectively, and those of Canadian Premier Life Insurance
Company - a subsidiary of Transamerica Life Canada - at "A" and
"a," respectively. All the above-mentioned ratings carry a stable
Further, the financial strength of the holding company and the
financial support provided to the subsidiary, along with the
strong credit ratings and importance of the subsidiaries also
contributed to the affirmation.
The strong earnings and risk-adjusted capitalization of the
subsidiaries led to the rating affirmation. The company's strong
foothold in various life and annuity markets, widespread
distribution platform with multiple channels, diversified
earnings stream, sturdy cash flow, economies of scale,
well-recognized brand name and efficient management of balance
sheet and liquidity position also contributed to the
However, A.M. Best foresees the probability of significant
credit losses in Aegon USA Group's general account investment
portfolio. Moreover, the group is significantly exposed to
capital market volatility, which could affect fee income and
The stable outlook on the ratings is based on expectation of
continued profitability, anticipation of revenue and profit
generation from recent partnerships and maintenance of the
current capitalization level. However, a long-term trend of
decline on capitalization, below-expectation operating
profitability or a fall in the creditworthiness of Aegon could
lead to a downgrade in ratings.
Other multi-line insurers worth considering are
CNO Financial Group Inc.
) - Zacks Rank #1 (Strong Buy),
) - Zacks Rank #1 (Strong Buy) and
) - Zacks Rank #2 (Buy).
AEGON N V (AEG): Free Stock Analysis Report
CIGNA CORP (CI): Free Stock Analysis Report
CNO FINL GRP (CNO): Free Stock Analysis
EASTERN INSURNC (EIHI): Free Stock Analysis
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