We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (15,459)
  • Industry Conferences (2)
  • Industry Job Openings (9)
  • Negative Media (134)
  • Positive Media (73)
  • Sheryl's Articles (572)
  • Sheryl's Blogs (157)
  • Wink's Articles (216)
  • Wink's Blogs (204)
  • Wink's Press Releases (89)
  • Blog Archives

  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • May 2008
  • February 2008
  • August 2006
  • AM Best Downgrades Credit Ratings of Globe Life Inc. and Its Subsidiaries

    July 22, 2020 by A.M. Best

    OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has downgraded the Financial Strength Rating (FSR) to A (Excellent) from A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a+” from “aa-” of the key life/health subsidiaries of Globe Life Inc. (formerly Torchmark Corporation) (Globe Life) (headquartered in McKinney, TX) [NYSE:GL]. Concurrently, AM Best has downgraded the Long-Term ICR to “bbb+” from “a-” of Globe Life. AM Best also has downgraded the associated Long-Term Issue Credit Ratings (Long-Term IRs) on the debt and indicative Long-Term IRs on the securities of Globe Life Inc. The outlook of these Credit Ratings (ratings) has been revised to stable from negative (See below for a detailed listing of these companies and ratings).

    The ratings of the life/health insurance subsidiaries of Globe Life reflect their balance sheet strength, which AM Best categorizes as strong, as well as their very strong operating performance, favorable business profile and appropriate enterprise risk management.

    The rating downgrades reflect Globe Life’s relatively low level of risk-adjusted capitalization, as measured by Best Capital Adequacy Ratio (BCAR), for its previous balance sheet strength assessment. AM Best notes that Globe Life’s risk-adjusted capitalization has trended down in recent years and is substantially below that of similarly rated peers. In addition, statutory capital and surplus has remained relatively flat in recent years, as organic earnings were largely offset by dividends paid to its parent, which have primarily been used for share repurchases and stockholder dividends. While the overall credit quality of invested assets is good, its allocation to NAIC-2 bonds has increased in recent years. As a result, any downward credit migration caused by the pandemic will likely negatively impact Globe Life’s risk-adjusted capital position.

    The ratings of Globe Life reflect its very strong operating performance over the past several years as all core lines of business have reported strong earnings annually and premium trends have been favorable. In addition, return ratios are superior to its peers and the life insurance industry averages. In addition, Globe Life maintains adequate liquidity supported by liquid assets, strong cash flows and good financial flexibility with access to capital markets, as well as short-term credit facilities if needed. The company has moderate financial leverage and strong interest coverage ratios, which are well within the guidelines for its current ratings. Globe Life also benefits from its diversified distribution platform and its niche businesses that provide life and supplemental health insurance products to the middle class and retired individuals.

    The FSR has been downgraded to A (Excellent) from A+ (Superior) and the Long-Term ICRs downgraded to “a+” of “aa-” with the outlooks revised to stable from negative for the following life/health subsidiaries of Globe Life Incorporated:

    • Globe Life And Accident Insurance Company
    • American Income Life Insurance Company
    • National Income Life Insurance Company
    • Liberty National Life Insurance Company
    • Family Heritage Life Insurance Company of America
    • United American Insurance Company
    • Globe Life Insurance Company of New York

    The following Short-Term IR has been affirmed:

    Globe Life, Inc. —
    — AMB-1 on commercial paper

    The following Long-Term IRs have been downgraded and the outlook has been revised to stable from negative:

    Globe Life, Inc. —
    — to “bbb+” from “a-” on $300 million 3.80% senior unsecured notes, due 2022
    — to “bbb+” from “a-” on $200 million 7.875% senior unsecured notes, due 2023
    — to “bbb+” from “a-” on $550 million 4.55% senior unsecured notes, due 2028
    — to “bbb-” from “bbb” on $300 million 6.125% junior subordinated debentures, due 2056

    The following indicative Long-Term IRs available under the shelf registration have been downgraded and the outlook has been revised to stable from negative:

    Globe Life, Inc. —
    — to “bbb+” from “a-” on senior unsecured debt
    — to “bbb” from “bbb+” on subordinated debt
    — to “bbb-” from “bbb” on preferred stock

    This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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

    Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

    Contacts

    Frank Walko, CPA, FLMI
    Financial Analyst
    +1 908 439 2200, ext. 5072
    frank.walko@ambest.com

    Michael Adams, CLU, FLMI
    Associate Director
    +1 908 439 2200, ext. 5133
    michael.adams@ambest.com

    Christopher Sharkey
    Manager, Public Relations
    +1 908 439 2200, ext. 5159
    christopher.sharkey@ambest.com

    Jim Peavy
    Director, Public Relations
    +1 908 439 2200, ext. 5644
    james.peavy@ambest.com

    Originally Posted at Business Wire on July 17, 2020 by A.M. Best.

    Categories: Industry Articles
    currency