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.
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