AM Best assigns credit ratings to Town & Country Life Insurance Company


OLDWICK, NJ – (BUSINESS WIRE) –AM Best assigned a financial strength rating of B + (good) and an issuer long-term credit rating of “bbb-” to Town & Country Life Insurance Company (Town & Country) (Salt Lake City, Utah). The outlook assigned to these credit ratings (ratings) is stable.

The ratings reflect the strength of Town & Country’s balance sheet, which AM Best considers adequate, as well as its adequate operational performance, limited business profile and appropriate management of business risks.

Town & Country maintains the highest level of risk-adjusted capitalization, as measured by AM Best’s capital adequacy ratio (BCAR), for its insurance and investment risks. The absolute capital and surplus have been relatively stable with no significant increase or decrease in the history of the company. Town & Country’s capital and surplus are considered low at $ 7.2 million through the third quarter of 2020. This low level of capital and surplus may limit the company’s ability to pivot under conditions. unfavorable market or economic conditions and makes it more exposed to potential. the impacts of operating losses. Town & Country’s balance sheet assessment is also supported by its prudent investment portfolio and continuing favorable liquidity levels. The assessment of the strength of the company’s balance sheet is mitigated by its potentially high reliance on reinsurance resulting from the launch of its Multi-Year Guaranteed Annuity (MYGA) product.

Town & Country’s ratings also reflect the stability of its operating results. The company has reported annual net operating earnings before taxes for the past five years and up to the third quarter of 2020, resulting from a combination of technical income and net investment income. Although Town & Country does not rely on investment results to remain profitable, the company has maintained profitability in a low interest rate environment. Although technical results have fluctuated slightly, they have been favorable over the past five years.

Town & Country’s strengths are mainly offset by a less diversified business profile in terms of product mix and geographic footprint, with 80% of Town & Country’s net written premiums (NPW) attributable to its group dental product and 18% to its product group vision. Additionally, 97% of the NPW as of 2020 is allocated to Utah. These factors can be mitigated with the launch of the MYGA product.

Town & Country has an evolving ERM program tailored to its current risk profile. Town & Country is a conservative, organically growing, low risk company with a proven track record of stable performance. However, as the company progresses into the annuities industry with its MYGA product, a more comprehensive and proven ERM program would be more suited to the increased risk profile of the company.

While the rating outlook is stable, future positive rating actions could result from significant product and geography diversification. Negative rating actions could result from a substantial drop in premiums and a significant deterioration in risk-adjusted capital.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent rating activity Web page. For more information on the use and limits of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the appropriate media use of Best’s credit ratings and AM Best press releases, please see Media Guide – Appropriate Use of Best Credit Ratings and AM Best Rating Stock Press Releases.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit

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