This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

A.M. Best Affirms Ratings Of Atlantic American Corporation And Upgrades Ratings Of Bankers Fidelity Life Insurance Company

Stocks in this article: AAME

A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” of American Southern Insurance Company (Topeka, KS) and its wholly owned and 100% reinsured subsidiary, American Safety Insurance Company (collectively referred to as American Southern). Concurrently, A.M. Best has affirmed the ICR of “bbb-” of the parent company, Atlantic American Corporation (Atlantic American) (NASDAQ: AAME).

Additionally, A.M. Best has upgraded the FSR to A- (Excellent) from B++ (Good) and ICR to “a-” from "bbb+" of Bankers Fidelity Life Insurance Company (Bankers Fidelity). The outlook for all ratings is stable. All companies are domiciled in Atlanta, GA, unless otherwise specified.

American Southern’s ratings reflect its strong risk-adjusted capitalization, conservative balance sheet, long history of profitability, management’s disciplined underwriting approach and its local market knowledge. Somewhat offsetting these positive rating factors is American Southern’s history of paying substantial stockholder dividends, which historically have been used to service the debt held at Atlantic American, and its trend of deteriorating underwriting performance in recent years.

The upgrading of Bankers Fidelity’s ratings recognizes its strong risk-adjusted capital position, improved financial results, continued business diversification strategy and its strategic importance to Atlantic American. The company continues to focus on the sale of senior life and niche individual life business, while maintaining its core Medicare supplement presence. Although the worksite arena is quite competitive, A.M. Best views favorably Bankers Fidelity’s longer term emphasis on the development of a complete worksite marketing channel.

The group’s ratings also consider the financial leverage and interest coverage of Atlantic American; adjusted debt-to-total capital and interest coverage ratios are currently about 21% and 2-3 times, respectively. Interest coverage is slightly below expectations for the given rating level; however, this is offset by the insurance companies’ ability to historically generate sufficient earnings to cover obligations at the parent. In addition, Atlantic American held roughly $26 million of cash and short-term investments and other marketable securities at June 30, 2012. A.M. Best expects Atlantic American to continue paying shareholder dividends at roughly the same level as seen in recent years.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs