A.M. Best recently issued a press release in relation to our Financial Strength Rating. It reflects an adjustment from A+ (Superior) with a negative outlook to A (Excellent) with a stable outlook.  While we at SBLI are disappointed with the downgrade, we were not surprised.  The tight margins associated with a commodity product like term life make it challenging to sustain competitive statutory earnings and capital growth, especially in the prolonged low interest rate environment.

The ‘A’ rating is A.M. Best’s 2nd highest Financial Strength category.  SBLI’s S&P rating remains at ‘A-’ (Strong). In addition, SBLI, as a regulated entity is required to set aside capital to offset future liabilities, and we currently maintain capital well in excess of those minimum levels required by regulators.  Therefore, as indicated by the A.M. Best rating of A (Excellent) with a stable outlook, we feel confident about the current capital level and future growth opportunities of the company.