A.M. Best upgrades outlook on Gulf Guaranty Life
by MBJ Staff
Published: May 4,2012
JACKSON — A.M. Best Co. has revised the outlook to “positive” from “stable” and affirmed the financial strength rating of “B- (Fair)” and issuer credit rating of “bb-” of Gulf Guaranty Life Insurance Company.
A.M. Best wrote: “The ratings reflect the company’s more than adequate level of risk-adjusted capitalization, improved net income reported in 2011 and consistent capital growth. The positive outlook reflects Gulf Guaranty Life’s recent operating profitability and the opportunity for business expansion through its additional industrial life sales activities in the funeral home market.
“Offsetting these factors are the overall modest and erratic levels of net income caused by investment losses, and flat credit insurance sales in the recent periods due to the slow lending market environment.
“Factors that could lead to positive rating movement include a continuation of positive net income trends while maintaining satisfactory levels of risk-adjusted capital. Potential for a future negative rating action could be possible should Gulf Guaranty Life experience weakened operating results or capitalization deteriorates materially from current levels.”
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- Peavey's wellness program honored after workers drop 1,000 pounds
- Pickering lists concerns over Mississippi Adequate Education Program formula
- Group, lesbian couples look to overturn state's ban on same-sex marriages
- Watkins says JRA out to block him from Farish by repaying HUD $1.5M
- Mississippi Film Studios signs contract with New Orleans company
- State renews battle over water use with city of Memphis
- Mars Food expanding Delta plant; investing $31M and adding jobs
- DAVID DALLAS: You say “Obama”, I say “Ebola”
- Biloxi baseball project still alive but may be held for 2015