Standard & Poor's Assigns Double-'B' Pi Rating to Health & Life Insurance Co. of America

Standard & Poor's recently assigned a double-'B' pi insurer financial strength rating to Health & Life Insurance Co. of America, a company licensed in 28 states and a major player in the individual accident and health insurance market. The company's strong capitalization, satisfactory liquidity, and negative computed retained earnings were among the factors considered in the rating decision. Health & Life Insurance Co. of America is a member of the Conseco family of companies and operates primarily in Florida.

Key Takeaways:

• The company's double-'B' pi rating reflects its strong capitalization, with a ratio of over 300% under Standard & Poor's capital adequacy model.
• Health & Life Insurance Co. of America's satisfactory liquidity is demonstrated by a liquidity ratio exceeding 300%.
• The company's negative computed retained earnings, measured by unassigned surplus to total adjusted capital, stand at -68.3%.
• The risk-adjusted return on assets is a limiting factor in the company's rating, reflecting its stand-alone credit quality.
• Health & Life Insurance Co. of America operates in 28 states and has its principle state of operation in Florida.
• The company underwent a transition from the Pioneer Insurance Group to the Conseco family of companies.

Statistics:

• The company's capitalization ratio exceeds 300%, indicating strong financial stability.
• The liquidity ratio exceeds 300%, demonstrating adequate financial resources.
• The negative computed retained earnings stand at -68.3%, indicating a significant drain on the company's finances.
• The risk-adjusted return on assets is a limiting factor, reflecting the company's stand-alone credit quality.

Sources:

• Standard & Poor's CreditWire
• Standard & Poor's website: http://www.ratings.standardpoor.com/