Two Sammons Financial Group (SFG) companies—as well as SFG itself—recently earned strong appraisals from Fitch Ratings. SFG subsidiaries Midland National Life Insurance Company and North American Company for Life and Health Insurance both garnered A+ Insurer Financial Strength grades.
As the Chicago-based parent company, SFG’s rating outlook was given an A- Issuer Default Rating and pronounced stable by the ratings firm.
SFG’s high scores are reflective of its strong profile and capitalization, low financial leverage and strong operating profitability, Fitch said. These features were only partially offset by the company’s “above average” asset and interest rate risk.
Fitch deems SFG a “top 30 company” based on assets and statutory capital, noting that the firm’s large size is relatively advantageous in terms of efficiency, distribution channels and risk diversification.
Factors that could influence the company’s future ratings positively include a reduced spread-based product risk or low operating leverage and high capital quality, and/or reduced structured securities relative to the firm’s lending program scope.
Triggers that can adversely impact a firm’s scores include any aggregated score below “Very Strong”; a risky asset ratio over 100 percent; amplified volatility in revenue; and/or a financial leverage ratio exceeding 15 percent.
“SFG maintains a solid competitive position in its primary products as a top 10 writer of individual life insurance in 2016, a top 10 writer of individual fixed annuities and a top 15 writer of individual annuities overall,” a Fitch Ratings spokesperson said.
For more information, visit www.midlandnational.life.