ManhattanLife Assurance Company, as well as, its 3 main operating subsidiaries, which are Family Life Insurance Company, The Manhattan Life Insurance Company, and Western United Life Assurance Company, have been assigned insurance financial strength ratings of BBB+ by the Kroll Bond Rating Agency. In addition to this, the Manahttan Life Group Inc. which is a Texas-based insurance holding firm that owns the 4 operating entities mentioned above also got assigned an issuer rating of BB+ by the Kroll Bond Rating Agency. The Position for all ratings is Stable.
The ratings reflect the promising level of the operating performance of the Manhattan Life Group which has been supported by a direct to independent distributor model for its fixed annuity business which lowers the distribution expenses and alleviates the firm’s limited scale. Moreover, the ratings also reflect the firm’s advancing geographic spread & operating flexibility as Manhattan Life Group‘s 4 insurance entities all have broad state licensing. In addition to this, the absence of a substantial amount of enforcing annuities at a high minimum assures rates provides the firm with the ability to forestall material spread compression during a period of moderately declining rates. Manhattan Life Group has a diverse product portfolio inclusive of Medicare Supplement, individual life & health insurance, annuities, and voluntary benefits. Kroll Bond Rating Agency believes Manhattan Life Group’s earnings diversification will be further improved by the extension of its worksite reach into the mid-to-large market space through the acquisition of workplace voluntary benefits business of Humana.
The stable position reflects the Kroll Bond Rating Agency’s expectation that Manhattan Life Group will continue to either enhance or maintain its existing risk-adjusted capitalization in the near to medium term. Potential operating performance is expected to be solid, but it might descent slightly below the realization of 2018. In addition to this, Kroll Bond Rating Agency anticipates Manhattan Life Group’s favorable operating results to drive the organic growth in capital & retention of earnings.