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2008 Annual Report
Hallmarks of Strength
Assurity's financial commitment
to our Policyholders
Board of Directors and Management
Assurity Life Public Holdings
(Excel Spreadsheet)
Assurity Life earns high marks!
According to research recently distributed by Weiss Research, Inc., www.MoneyandMarkets.com, Assurity Life Insurance Company is listed among the Strongest Life and Health plus Property and Casualty Insurers in the U.S. The Source of Financial Strength Ratings is TheStreet.com Ratings, www.TheStreet.com. The research is based on statutory filings with state insurance commissioners, second quarter 2008. To view the complete list, please click here. The Weiss Ratings scale is different from that of other rating agencies, such as A.M. Best Co. Weiss Ratings range from A or “excellent” to E or “very weak."
High Rating Shows Financial Strength
Assurity has earned an A- (Excellent) rating from A.M. Best Company, the insurance industry’s leading independent analyst. This rating reflects sound management practices,
favorable investment returns and low net costs to policyholders.
A.M. Best’s ratings for insurers’ financial strength and credit quality of obligations range from A++ (Superior) to F (in liquidation).
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November 1, 2009
Dear friends of Assurity:
Thank you for visiting our company’s public Web site!
I’m pleased to announce that Assurity received very positive news from A.M. Best Company, the insurance industry’s leading independent analyst. In October 2009 our rating of A- (Excellent)* with a stable outlook was affirmed. With the ratings downgrades many companies have faced, A.M. Best advised us that a stable rating is as good as a rating increase! Assurity’s solid financial results and very strong capital position are reflected in this rating.
I believe our country has come a long way from the really dark days of the recession in late 2008 and early 2009. But we still have a long way to go to have a truly healthy economy. I think transparency in sharing our company’s overall financial condition and investment results continues to be very important. Assurity is not exposed to key areas of concern—particularly structured investment securities, variable annuity living benefits and other serious product portfolio problems. Due to our overall conservative investment portfolio and strong risk-adjusted capital position, we are in a position to capitalize on opportunities that will result from these difficult economic times.
Highlights of our company’s strength include:
- Assurity has a strong risk-adjusted capital (RBC) position. At year-end 2008, we had an RBC of slightly over 580, which compares very favorably to the industry average of 382.
- Our company has no direct exposure to structured investment products. We have none of these products or any other alphabet soup-variety debt that have caused many companies to experience significant losses.
- Our commercial mortgage portfolio is broadly diversified by property type and geographical location. We have stress-tested our portfolio, and it will hold up very well even as we experience expected declining values in the commercial property area.
- We’ve stress-tested our bond portfolio. Any losses can be easily absorbed by our strong capital position. Overall, our total risky assets—including below-investment-grade bonds, unaffiliated common stocks and troubled real estate—are materially below industry averages.
- We have a strong liquidity position. We continue to carefully monitor this position.
- We are now seeing significant benefits from our operating company merger about three years ago. By practicing excellent ongoing expense control, we have held our general insurance expenses flat through the past 4½ years.
- Assurity has stable and improving operating performance. Last year we had record operating earnings. We believe our operating performance will continue to improve as we implement efficiencies which are in progress.
For more information about our company’s financial and investment information, please click on the About Assurity tab on this Web site.
Sincerely,
Tom Henning
Chairman, President, CEO |
