AM Best, the global credit rating agency, has announced that it has placed ShelterPoint Insurance Company (SPI) and ShelterPoint Life Insurance Company (SPL) under review with positive implications. Both companies, collectively referred to as ShelterPoint Life, currently hold a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent).
The decision to place ShelterPoint Life under review follows the recent announcement that Protective Life Corporation, a subsidiary of Dai-ichi Life Holdings, Inc., and its primary life insurance subsidiary, Protective Life Insurance Company, will be acquiring ShelterPoint Group, Inc., the holding company of ShelterPoint Life.
The under review status reflects the anticipated benefits that ShelterPoint Life will gain from joining Protective Life, as well as the enhanced financial strength of the combined organization. The transaction is expected to be finalized in late 2024.
During the review process, which will continue until the acquisition is completed, AM Best will assess ShelterPoint Life’s post-acquisition rating fundamentals. The ratings will remain under review until a comprehensive evaluation is conducted.
AM Best is a leading credit rating agency, news publisher, and data analytics provider in the insurance industry. Operating globally, the company has offices in various countries and provides valuable insights and ratings on insurance companies worldwide.
For more information on this announcement and other rating activities, please visit AM Best’s Recent Rating Activity web page.
ShelterPoint Life operates in the insurance industry, specifically in the life insurance sector. They provide financial protection and support to individuals and families through their insurance policies. With their subsidiaries, ShelterPoint Insurance Company and ShelterPoint Life Insurance Company, they offer a range of products and services to meet the needs of their customers.
The market forecast for the life insurance industry is positive, with continuous growth expected in the coming years. The increasing awareness of the importance of financial protection and the rising need for retirement planning are driving the demand for life insurance policies. Additionally, advancements in technology and the introduction of innovative products are further contributing to the expansion of the market.
However, the life insurance industry also faces certain challenges. One major issue is the low interest rate environment, which affects the investment returns of insurance companies. This can impact the profitability and financial stability of life insurers. Furthermore, increasing regulatory requirements and the need for robust risk management systems add complexity to the operations of insurance companies.
The acquisition of ShelterPoint Life by Protective Life Corporation is expected to bring significant benefits to both companies. Protective Life Corporation is a subsidiary of Dai-ichi Life Holdings, Inc., a leading Japanese insurance group. The acquisition will provide ShelterPoint Life with enhanced financial strength and access to new resources and expertise. This strategic move can contribute to their growth and competitiveness in the industry.
AM Best’s decision to place ShelterPoint Life under review with positive implications reflects the potential advantages of the acquisition. The agency will assess the post-acquisition rating fundamentals of ShelterPoint Life to ensure the continued financial strength and stability of the company. This evaluation process highlights AM Best’s commitment to providing accurate and reliable ratings for insurance companies.
For more information on AM Best’s rating activities and to stay updated on the latest news and announcements, you can visit their website. AM Best is a trusted source of information and analysis in the insurance industry, offering valuable insights for investors, policyholders, and other stakeholders.