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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

A.M. Best Affirms Ratings Of Protective Life Corporation And Its Subsidiaries

A.M. Best has affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of “aa-” of the primary life/health subsidiaries of Protective Life Corporation (Protective) (headquartered in Birmingham, AL) [NYSE:PL], led by Protective Life Insurance Company (Brentwood, TN). Additionally, A.M. Best has affirmed the ICR of “a-” and debt ratings of Protective. The outlook for all ratings is stable. (See link below for a detailed listing of the companies and ratings.)

The ratings reflect Protective’s diversified business profile, favorable operating results and proven ability to acquire and integrate insurance companies and blocks of business. Protective has experienced strong top line growth in its core life and annuity lines of business over the past year, despite a decline in the second half of the year due to a strategic decision to reduce variable annuity sales and increased competition in the ordinary life insurance line of business. Pre-tax operating results on both a statutory and GAAP basis also have increased during the past year and have benefited from favorable mortality in the life insurance line of business and increased separate account fee income due to increasing variable annuity account balances. In addition, Protective closed on the acquisition of MONY Life Insurance Company (MONY) on October 1, 2013, which also contributed positively to earnings and insurance premiums. A.M. Best notes that recent acquisitions by Protective have been accretive and have resulted in a stable source of earnings. Additionally, these acquisitions have enabled the company to realize certain operating efficiencies.

The ratings also acknowledge Protective’s sound risk-adjusted capitalization on both a consolidated basis and within each of its insurance operating entities, despite a decline in the fourth quarter of 2013 due to the MONY acquisition. While financial leverage at the holding company also increased somewhat, A.M. Best notes that Protective’s debt-to-capital ratio and interest coverage ratios remain within A.M. Best’s guidelines for the current ratings. In addition, the company maintains multiple sources of liquidity including strong cash flows from its insurance operating entities, access to a line of credit of up to $750 million, cash held at the holding company equivalent to 12 months’ interest expense, and a fairly liquid investment portfolio, which remains in a sizable net unrealized gain position.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 18,224.09 -64.54 -0.35%
S&P 500 2,107.70 -9.69 -0.46%
NASDAQ 4,983.9690 -24.1270 -0.48%

Partners Compare Online Brokers

Free Reports

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