The affirmation of Fidelity Lifeís ratings reflects its adequate risk-adjusted capitalization, continued operating profitability and high earnings retention.
The key offsetting factor is the impact of competitive pressures on Fidelity Life, which may result in a greater lapse of policies than expected and/or smaller premium increases than anticipated.
Upward rating movement is unlikely in the medium term. Negative rating actions may occur if there is a material deviation from Fidelity Lifeís target solvency capital. Additionally, any significant deterioration in the lapse or expense experiences could put negative pressure on the ratings.
The methodology used in determining these interactive ratings is Bestís Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bestís rating process and contains the different rating criteria employed in the rating process. Bestís Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
This rating announcement has been issued by
Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS
Senior Financial Analyst
Senior Manager, Public Relations
Assistant Vice President, Public Relations