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A.M. Best Affirms Credit Ratings of Members of Standard Insurance Group and Pacific Guardian Life Insurance Company, Ltd.A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "a+" of Standard Insurance Company (Portland, OR) and its affiliate, The Standard Life Insurance Company of New York (White Plains, NY), together referred to as the Standard Insurance Group (Standard Group). Additionally, A.M. Best has affirmed the Long-Term ICR of "bbb+" and the Long-Term Issue Credit Ratings (Long-Term IR) on the outstanding notes of StanCorp Financial Group, Inc. (Portland, OR), the intermediate holding company of the Standard Group. (See below for a listing of the Long-Term IRs.) Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of "a" of Pacific Guardian Life Insurance Company, Ltd. (Pacific Guardian) (Honolulu, HI). The outlook for these Credit Ratings (ratings) is stable. The Standard and Pacific Guardian are the U.S. insurance subsidiaries of Meiji Yasuda Life Insurance Company (Japan). The rating affirmations of the Standard Group reflect its strong market position within its core markets, maintaining a top-10 position in its core employee benefits segments. Furthermore, the organization has consistently reported favorable operating performance on a statutory and U.S. GAAP basis, which has supported capitalization levels. Partially offsetting rating factors include the high level of competition in the employee benefits market space, which may challenge the company to consistently maintain premium growth trends and profitability margins. Additionally, sales and profitability may be impacted by the continued low interest rate environment and changes in regulations, including the Department of Labor's fiduciary standard and the Affordable Care Act. The company's mortgage loan portfolio is viewed as higher risk due to high allocation of the portfolio relative to total capital, geographic concentration and the oncentration in retail properties. However, A.M. Best notes that the holdings have a low average loan size, favorable loan-to-value and debt-service metrics and have a very low delinquency history. The rating affirmations of Pacific Guardian reflect its leading market position in Hawaii's temporary disability income market and strong risk-adjusted capitalization. Additionally, the company has reported consistently positive earnings in each of its core lines of business; however, A.M. Best notes that earnings have declined in recent years. Partially offsetting these positive rating factors are the concentration risks in the business profile and investment portfolio. The following Long-Term IRs have been affirmed with a stable outlook:
StanCorp Financial Group, Inc.- The indicative Long-Term IRs of "bbb+" on the senior unsecured debt, "bbb" on the subordinated debt, and "bbb-" on the preferred stock under the shelf registration of StanCorp Financial Group, Inc. have been withdrawn as the shelf registrations have expired. This press release relates to Credit Ratings that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
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