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A.M. Best Reiterates Unum Ratings - Analyst Blog
2/4/2013 6:10:00 PM
A.M. Best Co. reiterated the issuer credit rating (ICR) of "bbb" of Unum Group ( UNM ) and its present debt securities. Alongside the rating agency reiterated the financial strength rating (FSR) of "A" (Excellent) and ICR of "a" of the core U.S. life and health insurance subsidiaries of Unum Group. All the ratings carry a stable outlook.
The subsidiaries of Unum which received the FSR and ICR rating
affirmations are- Unum Life Insurance Company of America,
Provident Life and Accident Insurance Company, The Paul Revere
Life Insurance Company, Colonial Life & Accident Insurance
Company, First Unum Life Insurance Company and Provident Life and
Casualty Insurance Company.
Other positives like stable earnings, high returns, and focus
on underwriting discipline coupled with controlled expenses have
also impacted the ratings.
With Unum's debt-to-capital ratio of 25%, strong interest
coverage and $800 million of holding company cash and marketable
securities, the credit rating agency also considers the company
to be financially strong and flexible.
Rating affirmations or upgrades from credit rating agencies play an important part in retaining investor confidence in the stock as well as maintaining the creditworthiness in the market. We believe that the company's present score with the credit rating agencies will help it write more business going forward.
Last month, A.M Best affirmed the ICR of Assurant Inc. ( AIZ ) at "bbb" following a periodic review. It also affirmed the ICR and FSR of the Property and Casualty and Life and Health subsidiaries of the company. All the ratings carried a stable outlook.
Unum Group currently carries a Zacks Rank #4 (Sell). Among others from the industry, Employers Holdings ( EIG ) and Travelers Companies ( TRV ) carry a favorable Zacks Rank #2 (Buy) and are worth noting.
ASSURANT INC (AIZ): Free Stock Analysis Report
EMPLOYERS HLDGS (EIG): Free Stock Analysis Report
TRAVELERS COS (TRV): Free Stock Analysis Report
UNUM GROUP (UNM): Free Stock Analysis Report
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