National Life makes the grade, bond rating boosted by S&P to ‘A+’
National Life Group,Vermont Business Magazine The financial strength rating for National Life Group’s insurance companies was boosted by Standard & Poor’s on Thursday based on the company’s improved capital strength and stronger credit quality. S&P Global Ratings formally raised the rating of National Life Insurance Company and Life Insurance Company of the Southwest to “A+” from “A.” At the same time, SP Global raised its issuer credit rating on NLV Financial Corp., National Life’s holding company, to “BBB+” from “BBB.”“We’re delighted we’re being recognized by S&P for the financial strength of our 167-year-old company,” said Mehran Assadi, president and CEO of National Life Group.S&P praised National Life’s focus on the fundamentals. “The upgrade reflects our view that NL Group has improved its capital strength, resulting in stronger credit quality,” S&P said.“We now view the insurer’s financial risk profile as extremely strong, compared to our prior opinion of very strong. Over the past few years, NL Group has organically grown its capital, more effectively managed its investments in structured securities, and successfully completed a closed block reinsurance transaction. We believe its improved capital position is sustainable.”S&P said National Life’s “business risk profile remains strong” and noted that premiums and deposits are almost evenly split between protection and retirement savings.The outlook by S&P was listed as stable and “reflects our expectation that NL Group will maintain its strong business risk profile encompassing engaged and productive distribution and favorable operating performance.”Source: National Life 8.12.2016 NationalLife.com(link is external).