Moody’s upgrades OneAmerica

Indianapolis-based insurer OneAmerica Financial Partners Inc. has received upgrades from Moody’s Investors Service along with a lavish dollop of praise.

Moody’s bumped the senior debt rating to Baa1 from Baa2. OneAmerica’s main insurance arm, American United Life Insurance Co., was pushed to A1 from A2.

Profit and stability have improved as OneAmerica exited the reinsurance and credit insurance markets to focus on retirement services, individual life insurance and annuities, Moody’s said.

OneAmerica also sidestepped losses from subprime mortgages that have plagued other companies.

“OneAmerica’s solid performance during the current credit crisis is driven by its conservative investment portfolio, its excellent and stable capital adequacy, and very good financial flexibility and liquidity, said Moody’s Vice President and Senior Credit Officer Arthur Fliegelman.

However, Moody’s cautioned that OneAmerica is still a moderate-sized player in an industry that’s consolidating. An acquisition that drives greater profits for OneAmerica might trigger another rating upgrade, the agency said.

For more on OneAmerica’s possible acquisition plans, click here.

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