IBJNews

Financial strength ratings of OneAmerica subsidiaries climb even higher

Back to TopCommentsE-mailPrintBookmark and Share
On The Beat Industry News In Brief

The subsidiaries of Indianapolis-based OneAmerica Financial Partners Inc. had their financial strength ratings boosted into rarefied air by New Jersey-based A.M. Best Co., the most influential rating agency in the life insurance industry.

Best assigned an A+ rating to OneAmerica’s American United Life Insurance Co., State Life Insurance Co. and Pioneer Mutual Life Insurance Co. The companies previously had a rating of A.

Fewer than 20 percent of large life insurers have a rating of A+ or above. OneAmerica officials expect the higher rating to help it convince independent insurance agents to promote OneAmerica policies because the financial strength rating indicates the company is more likely to be able to pay when a customer goes to cash in a life insurance policy years into the future.
 

OTB One America OneAmerica employs 1,300 workers at its headquarters in downtown Indianapolis. (IBJ File Photo)

OneAmerica is one of only two life insurers to be bumped up to an A+ rating since the recession that began in late 2007. Many life insurers suffered huge investment losses—at least on paper—due to the collapse in residential real estate and the stock market. But OneAmerica’s investments remained strong during that period.

“A.M. Best notes that OneAmerica’s investment portfolio has continued to perform significantly better than most of its life/annuity peers with respect to both realized and unrealized losses over the last few years,” A.M. Best analysts Ken Johnson and Rosemarie Mirabella wrote. They added, “OneAmerica’s exposure to structured securities remains significantly lower than life industry norms with no allocation to subprime or Alt-A collateral.”

In 2010, OneAmerica’s overall revenue rose 10.6 percent, to $1.4 billion. Its profits surged even more, climbing 18.7 percent, to $121.9 million.

“As a mutual organization, our long-term focus enabled us to build strength and accelerate sales growth through the financial crisis,” said OneAmerica CEO Dayton Molendorp in a statement. He added, “A.M. Best has recognized OneAmerica’s ability to progress in an industry facing considerable headwinds.”

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT