This Day On The Street
Continue to site
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

A.M. Best Upgrades Ratings Of Zale Life Insurance Company; Affirms Ratings Of Zale Indemnity Company

A.M. Best Co. has upgraded the financial strength rating (FSR) to B++ (Good) from B+ (Good) and issuer credit rating (ICR) to “bbb+” from “bbb-” of Zale Life Insurance Company (Zale Life) (Phoenix, AZ). Concurrently, A.M. Best has affirmed the FSR of B++ (Good) and ICR of “bbb+” of Zale Life’s affiliate, Zale Indemnity Company (ZIC) (Irving, TX). The outlook for Zale Life has been revised to stable from positive, while the outlook for ZIC is stable.

The rating upgrades reflect Zale Life’s role as the credit life and disability insurance provider for the Zale Insurance Companies, its strong distribution relationship within the Zales retail stores in the United States, Canada and Puerto Rico and the synergies gained through common management, marketing platforms and shared services with ZIC. The ratings also consider Zale Life’s continued solid risk-adjusted capitalization and positive earnings stream. A.M. Best also notes that Zale Life’s investment portfolio is very short term in nature and has high levels of liquidity.

ZIC’s affirmations reflect its continued strong underwriting results, profitable earnings and more than adequate risk-based capitalization. In the past three years, ZIC has significantly increased its premium volume while maintaining its strong underwriting metrics. The increase in written and earned premium can be primarily attributed to ZIC's state licensing initiatives, increasing its certificates of authority, as well as increased sales at the parent company, Zale Corporation (Zale Corp) [NYSE: ZLC].

While recognizing the group’s solid capital position and good profitability, A.M. Best notes that growth within the enterprise depends upon the health and strength of the economy, specifically as it relates to jewelry sales at Zale Corp. A.M. Best notes that while discretionary sales recently have improved, a potential decrease in consumer activity can still adversely impact the associated opportunities to market the group’s core credit products. Additionally, the ratings consider the challenges the organization faces in balancing new premium growth while maintaining favorable earnings trends and capitalization.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs