Household Life Insurance Group’s ratings primarily recognize its adequate risk-adjusted capitalization and generally positive operating performance over the past five years. While operating results had benefitted from the release of reserves from its credit insurance block of business, earnings declined significantly in 2011. A.M. Best expects the organization’s earnings to remain positive, although substantially lower than its pre-2011 run-rate, due primarily to lower anticipated investment income.A.M. Best views the Household Life Insurance Group to be well positioned at its current rating level. Potential negative rating actions could occur if benefit cost increases result in operating losses, or if significant additional stockholder dividends are taken from the group resulting in a further decline in risk-adjusted capital below A.M. Best’s expectations.
A.M. Best Downgrades Ratings Of Household Life Insurance Company And Its Affiliates
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