A.M. Best Withdraws Ratings of Life of America Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating (FSR) of D (Poor) and issuer credit rating (ICR) of “c” of Life of America Insurance Company (Life of America) (Dallas, TX). The outlook for both ratings is negative. Subsequently, A.M. Best has withdrawn the ratings and assigned an NR-4 to the FSR and an “nr” to the ICR in response to the company’s request to be removed from A.M. Best’s interactive rating process.

The affirmations reflect Life of America’s weak risk-adjusted capital position, which remains below company action level. Additionally, one-half of the company’s capital and surplus is represented by one commercial mortgage loan. Life of America is currently in run off.

A buyer for Life of America is currently being sought. Last year, a definitive agreement to sell the company was reached, but that transaction was never completed.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.