OLDWICK: Insurance sector rating agency, AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of First Assurance Life of America, Performance Life of America and Versant Life Insurance Company.

The outlook of these Credit Ratings (ratings) is stable. All companies are headquartered in Baton Rouge, LA. Concurrently, AM Best has withdrawn these ratings as the companies have requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect the three entities’ balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

These companies underwrite credit life and credit accident & health products to support the Louisiana Dealers Services Group (LDS). Each one contributes capital to the LDS Group and have high quality asset portfolios. These entities also make small, but favorable, premium contributions to the overall group and are a source of net income.

Despite this, premium levels from these entities have diminished over the last five years and their investment yields remain low. While the property/casualty companies are major contributors of the group’s earnings, the group has additionally benefited from affiliated credit life earnings. LDS’ credit life subsidiaries have been historically profitable with low to high single digit returns. Credit life products in general tend to have very low loss ratios, which has allowed the LDS Group to further benefit from their inclusion.