AM Best Affirms Credit Ratings of Members of Standard Insurance Group and Pacific Guardian Life Insurance Company, Limited


AM Best has endorsed a Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of Standard Insurance Company (Portland, OR) and a affiliate, The Standard Life Insurance Company of New York (White Plains, NY), together referred to as a Standard Insurance Group (The Standard). Additionally, AM Best has endorsed a Long-Term ICR of “bbb+” and a Long-Term Issue Credit Rating (Long-Term IR) of “bbb+” on a superb $250 million 5% comparison unsecured notes, due 2022, of StanCorp Financial Group, Inc. (StanCorp Financial) (Portland, OR), a middle holding association of The Standard.

Concurrently, AM Best has endorsed a FSR of A (Excellent) and a Long-Term ICR of “a” of Pacific Guardian Life Insurance Company, Limited (Pacific Guardian) (Honolulu, HI). The opinion of these Credit Ratings (ratings) is stable. The Standard and Pacific Guardian are a U.S. word subsidiaries of Meiji Yasuda Life Insurance Company (Meiji Yasuda).

The ratings of The Standard simulate a change piece strength, that AM Best categorizes as strong, as good as a clever handling performance, auspicious business form and suitable craving risk government (ERM). The ratings also cruise The Standard’s vital purpose within a Meiji Yasuda organization.

The Standard has shown strengthening of a risk-adjusted capital, as totalled by a Best Capital Adequacy Ratio (BCAR). The auspicious trend for risk-adjusted collateral over a past year is formed on a multiple of auspicious gain and a miss of dividends to StanCorp Financial. However, The Standard maintains a tolerably unsure investment portfolio with a high allocation to blurb mortgages, nonetheless AM Best recognizes that this is an area of imagination for a association and partial of a altogether business strategy. AM Best also records that The Standard’s portfolio is really well-diversified and historically has achieved good with really low evasion rates. The Standard has a clever marketplace participation in a core worker advantage and particular incapacity markets. The association has reported auspicious premiums development, good gain and a low turn of sensitivity in a handling results. In addition, revenues and gain are diversified for a classification by a item government business segment.

The ratings of Pacific Guardian simulate a change piece strength, that AM Best categorizes as strongest, as good as a adequate handling performance, singular business form and suitable ERM. In addition, a ratings are extended by a financial strength of Pacific Guardian’s parent, Meiji Yasuda.

Pacific Guardian maintains a strongest turn of risk-adjusted capitalization, as totalled by a BCAR. Total collateral has declined over a past few years due to dividends to a ultimate parent, as good as collateral deployment to account new information technology; however, this has had a minimal outcome on a BCAR, due to a high turn of extensive collateral and consistently auspicious earnings. Pacific Guardian maintains a heading marketplace position in Hawaii’s proxy orthodox incapacity income market, though a association is challenged to uncover suggestive top-line expansion or income diversification due to a business and geographic concentrations. Earnings are expected to sojourn favorable, though margins will slight in a nearby tenure as a association continues to make investments in a information systems and technology.

The Standard and Pacific Guardian say local-based ERM programs that are extensive and well-developed, and that residence risks for any association alongside a concurrent organisation module with Meiji Yasuda.

This press recover relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to a recover and impending disclosures, including sum of a bureau obliged for arising any of a particular ratings referenced in this release, greatfully see AM Best’s Recent Rating Activity web page. For additional information per a use and stipulations of Credit Rating opinions, greatfully perspective Understanding Best’s Credit Ratings. For information on a correct media use of Best’s Credit Ratings and AM Best press releases, greatfully perspective Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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