The rating upgrades reflect MLIC's financial and managerial support from MLIC's parent company,
MLIC markets a diversified product portfolio primarily through personal producing agents, general agents, brokers and direct marketing. A general portfolio of ordinary life, group life, credit life and accident and health insurance products are marketed and sold predominantly in
A capital infusion from MLIC's owners in the form of preferred stock in 2011, coupled with positive operating results over the past two years, enabled its capitalization to increase to more acceptable levels. A number of management initiatives have been put into place, including meaningful cost savings, which have contributed to the company's return to profitability.
Partially offsetting these strengths include a history of unprofitable results, declining premium trends and challenges associated with rebuilding a brand and generating sustained profitable premium growth in MLIC's core markets.
Key rating factors that could result in positive rating actions include continued growth in MLIC's risk-adjusted capitalization, maintenance of favorable operating results and the continued support of the owners. Factors that could result in negative rating actions include a decrease in risk-adjusted capitalization or total capital, operating losses and reduced support from the owners.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of
Keywords for this news article include: Insurance Companies,
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