On August 20, 2015, A.M. Best Co. affirmed its financial strength rating (FSR) of Reliance Standard Life Insurance Co. and First Reliance Standard Life Insurance Co. (collectively Reliance Standard). The rating remains A+ (Superior).
A.M. Best also affirmed Reliance Standard’s issuer credit rating (ICR) of “aa-” (Superior). The ICR of the existing debt of Reliance Standard’s intermediate holding company, Delphi Financial Group (DFG), was also affirmed at “a-”. The outlook for all ratings is Stable.
According to A.M. Best, the affirmed rating “reflects both the combined strength and support of [Reliance Standard's] ultimate parent, Tokio Marine, as well its established presence within the small to mid-size employee benefits marketplace." The ratings also consider Reliance Standard’s improved risk-management capabilities, its disciplined pricing philosophy and the reasonable level of financial leverage and strong interest coverage ratios at DFG.
A.M. Best notes that Reliance Standard’s entrance into the stop loss insurance market has added to the company’s diverse portfolio of employee benefits and annuity products.
A.M. Best describes its financial strength rating as “an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. It is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile.”