Symetra’s Annuities Have Strength Ratings Reaffirmed
Saturday, September 26th, 2009From a press release on Reuters, “A.M. Best Affirms Ratings of Symetra Financial Corporation and Its Subsidiaries.” Symetra Life Insurance Company out of Bellevue, WA and its subsidiary, First Symetra National Life Insurance Company of New York, received a financial strength rating of A (excellent) and issuer credit ratings of a+ from A.M. Best Company. All of the ratings issued for Symetra are considered to be stable going forward.
The company’s liquidity is solid as is their risk-adjusted capital position. All four of Symetra’s business segments maintain consistent operating profitability and they continue to grow despite difficult economic conditions. These reasons along with the fact that Symetra carries significantly less asset risk on its balance sheet than peers with similar financial ratings, helped to determine their A.M. Best rating.
Symetra is challenged to maintain its strong financial ratings despite a short list of factors that could throw them off track. Current economic conditions, a heavy concentration in product lines that are spread-based or otherwise commoditized, a large number of immediate annuities and structured settlements that expose them to reinvestment risk, and some other risks are being watched closely. Since 90% of Symetra’s product sales in the first half of 2009 were from fixed annuities, they are closely managing the asset and liability duration match that has improved their cash flow in the past to keep their excellent rating.
