AM Best revises outlook to positive for SWBC Life Insurance Company

OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best revised the outlook from stable to positive and confirmed the financial strength rating of B ++ (good) and the issuer’s long-term credit rating of “bbb +” (good) of SWBC Life Insurance Company (SWBC Life) ( San Antonio, Texas).

Credit ratings (ratings) reflect the strength of SWBC Life’s balance sheet, which AM Best considers to be very strong, as well as its adequate operational performance, limited business profile and appropriate enterprise risk management (ERM).

The revised outlook to positive reflects AM Best’s expectations that SWBC Life’s positive capital growth trend will continue and the company will maintain the current balance sheet measures, including its favorable overall liquidity position as well as its adjusted capitalization. risk, as measured by Best’s Capital Adequacy Ratio, which is currently at the highest level. The absolute and risk-adjusted capitalization of SWBC Life has shown notable increases in recent years due to the retention of constant operating gains. In addition, SWBC Life has maintained stable revenue despite increased competition and the recent economic downturn caused by the COVID-19 pandemic, as the company’s business model of directly purchasing and paying for insurance -credit has expanded with new distribution partnerships and additional business lines in recent periods. As a result, SWBC Life has experienced lower volatility in premium generation compared to the credit life insurance industry in general.

SWBC Life is strongly integrated with its parent company, Southwest Business Corporation (SWBC), a diversified financial services company based in Texas. SWBC Life benefits from the expertise of the Financial Institutions division within SWBC to sell and distribute its credit insurance product. SWBC Life also benefits from SWBC’s extensive and scalable ERM program, which encompasses the entire organization.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this publication, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the appropriate media use of Best’s credit scores and AM Best press releases, please see the Media Guide – Appropriate Use of Best’s Credit Ratings and press releases. action by AM Best.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.


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