Offsetting these positive rating factors are the challenges Allstate Financial faces to sustain and improve its overall operating performance, which remains modest relative to A.M. Best’s expectations. Managing its large, but declining, interest sensitive liabilities that remain exposed to interest rate, credit, reinvestment and disintermediation risks add to the challenge. While A.M. Best recognizes the currently favorable performance of Allstate Financial’s investment portfolio, there remain several asset classes that could be exposed to potentially large asset impairments should the fragile U.S. economic recovery stall or deteriorate. However, A.M. Best notes that Allstate Financial has been actively reducing its exposure to these asset classes.A.M. Best believes Allstate Financial is well positioned at the current rating level for the foreseeable future. Factors that could result in negative rating actions include negative rating actions taken by A.M. Best on AIC, a material change in A.M. Best's view of Allstate Financial's importance to the enterprise or a significant and sustained decline in its consolidated risk-adjusted capitalization.
A.M. Best Affirms Ratings Of The Allstate Corporation And Its Subsidiaries
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