OLDWICK, NJ, August 16, 2024–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Ratings of “bb” (Fair) of American Federated Life Insurance Company (AFLIC) and American Federated Insurance Company (AFIC). The outlook of these credit ratings (ratings) is stable. At the same time, AM Best has withdrawn these ratings at the company’s request to no longer participate in AM Best’s interactive rating process. Both companies are known collectively as American Federated Insurance Companies and are based in Flowood, MS.
The ratings of AFLIC and AFIC reflect their balance sheet strength, which AM Best considers to be very strong, as well as their adequate operating performance, limited business profiles and marginal risk management. The ratings also reflect the burden of their parent company, First Tower Finance Company LLC (First Tower Finance).
The American Federated Insurance Companies are indirect, wholly owned subsidiaries of First Tower Finance, a multi-line finance company. Prospect Capital Corporation (NASDAW: PSEC) owns a majority interest in First Tower Finance and its subsidiaries.
AFLIC and AFIC offer various credit insurance policies for individuals who have personal loans from First Tower Finance’s consumer credit subsidiaries.
The downgrade of AFIC and AFLIC’s ratings reflects the high interest expenses and significant debt with an equity deficit of First Tower Finance’s members.
The stable outlooks of AFIC and AFLIC reflect AM Best’s expectation that both companies will maintain adequate operating results and a very strong balance sheet, while the negative impact from First Tower Finance will continue.
This press release refers to credit ratings published on AM Best’s website. All rating information related to this publication and related disclosures, including the identification of the bureau responsible for assigning each credit rating mentioned in this press release, can be found on AM Best’s website. Current review activity Website. For more information on the use and limitations of credit rating opinions, see Guide to Best Credit Ratings. For information regarding the proper use of AM Best’s credit ratings, performance ratings, preliminary credit ratings and press releases, please visit Guide to the correct use of Best’s ratings and reviews.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company operates in over 100 countries and has offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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Contacts
Christine DePalma, CPCU, ASLI
Financial Analyst
+1 908 882 1732
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director
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Al-Slavin
Senior PR Specialist
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