The ratings of Guardian reflect its long-term financial strength as a mutual company, which is characterized by superior risk-adjusted capitalization ratios, a generally conservative investment portfolio and sound enterprise risk management (ERM) capabilities. Guardian’s core business segments—individual life, individual disability and group benefits—continue to generate steady operating earnings and cash flows. ERM practices are well-developed with utilization of economic capital modeling and stress testing. Guardian continues to invest in branding, technological innovation and refinements in its distribution channels. Additionally, the company has made progress in implementing a number of initiatives to exit lower margin businesses, expand its presence in core markets and further refine its overall business profile.
Offsetting rating factors include heightened competition within the employee benefits sector and continued headwinds from the low interest rate environment. Additionally,
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS
Senior Financial Analyst
Assistant Vice President, Public Relations