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American Equity Investment and Units' Ratings Reiterated
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American Equity Investment Life Holding Company (AEL - Free Report) was recently affirmed with the Long-Term Issuer Credit Ratings (ICR) of “bbb-”and the Long- and Short-Term Issue Credit by A.M. Best. However, the rating giant has retained the Financial Strength Rating (FSR) of A- (Excellent) and Long-Term ICR of “a-” for the company’s subsidiaries - American Equity Investment Life Insurance Company, American Equity Investment Life Insurance Company of New York and Eagle Life Insurance Company. The outlook is stable.
The rating affirmations came on the back of the concerned company’s leading position as a fixed-indexed annuities provider as well as diversified distribution channels which A.M. Best takes into account to reiterate the ratings. Besides, the rating giant acknowledges the insurer’s steady investment margins, growing assets under management and adequate risk-adjusted capitalization.
Significantly, American Equity Investment’s financial leverage and interest coverage ratios are well with A.M. Best guidelines.
Nonetheless, fixed-indexed annuities having a high percentage of living benefit guarantees, low interest rate environment weighing on margin expansion and intense competition posing a hindrance for growth are partial offsets. Also, the recent adoption of the U.S. Department of Labor rule demanding higher fiduciary standards for tax qualified fixed annuity writers weighing on revenues is a drag on the upsides.
Rating affirmations or upgrades from credit rating agencies play an important part in retaining investor confidence on the stock as well as maintaining credit worthiness in the market. Therefore, rating downgrades adversely affect the business as well as increase the costs of future debt issuances.
We believe, strong ratings will help American Equity Investment retain investor confidence as well as help it write more businesses going forward.
Shares of American Equity Investment outperformed the Zacks categorized Life Insurance industry quarter to date. Shares of the insurer gained 11.38% compared with the industry’s increase of 1.00%. American Equity Investment carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Investors interested in the insurance industry can look for CNA Financial Corporation (CNA - Free Report) , State National Companies, Inc. and Progressive Corp. (PGR - Free Report) .
CNA Financial offers commercial P&C insurance products, primarily in the U.S. The company has delivered positive surprises in three of the last four quarters with an average beat of 12.45%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Progressive provides personal and commercial property-casualty insurance, and other specialty property-casualty insurance and related services primarily in the United States. The company has delivered positive surprises in two of the last four quarters with an average beat of 4.95%. The stock flaunts a Zacks Rank #1
State National Companies provides property and casualty insurance in the United States. The company has delivered positive surprises in two of last four quarters with an average beat of 20.54%. The stock carries a Zacks Rank #2.
5 Trades Could Profit "Big-League" from Trump PoliciesIf the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
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American Equity Investment and Units' Ratings Reiterated
American Equity Investment Life Holding Company (AEL - Free Report) was recently affirmed with the Long-Term Issuer Credit Ratings (ICR) of “bbb-”and the Long- and Short-Term Issue Credit by A.M. Best. However, the rating giant has retained the Financial Strength Rating (FSR) of A- (Excellent) and Long-Term ICR of “a-” for the company’s subsidiaries - American Equity Investment Life Insurance Company, American Equity Investment Life Insurance Company of New York and Eagle Life Insurance Company. The outlook is stable.
The rating affirmations came on the back of the concerned company’s leading position as a fixed-indexed annuities provider as well as diversified distribution channels which A.M. Best takes into account to reiterate the ratings. Besides, the rating giant acknowledges the insurer’s steady investment margins, growing assets under management and adequate risk-adjusted capitalization.
Significantly, American Equity Investment’s financial leverage and interest coverage ratios are well with A.M. Best guidelines.
Nonetheless, fixed-indexed annuities having a high percentage of living benefit guarantees, low interest rate environment weighing on margin expansion and intense competition posing a hindrance for growth are partial offsets. Also, the recent adoption of the U.S. Department of Labor rule demanding higher fiduciary standards for tax qualified fixed annuity writers weighing on revenues is a drag on the upsides.
Rating affirmations or upgrades from credit rating agencies play an important part in retaining investor confidence on the stock as well as maintaining credit worthiness in the market. Therefore, rating downgrades adversely affect the business as well as increase the costs of future debt issuances.
We believe, strong ratings will help American Equity Investment retain investor confidence as well as help it write more businesses going forward.
Shares of American Equity Investment outperformed the Zacks categorized Life Insurance industry quarter to date. Shares of the insurer gained 11.38% compared with the industry’s increase of 1.00%. American Equity Investment carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Investors interested in the insurance industry can look for CNA Financial Corporation (CNA - Free Report) , State National Companies, Inc. and Progressive Corp. (PGR - Free Report) .
CNA Financial offers commercial P&C insurance products, primarily in the U.S. The company has delivered positive surprises in three of the last four quarters with an average beat of 12.45%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Progressive provides personal and commercial property-casualty insurance, and other specialty property-casualty insurance and related services primarily in the United States. The company has delivered positive surprises in two of the last four quarters with an average beat of 4.95%. The stock flaunts a Zacks Rank #1
State National Companies provides property and casualty insurance in the United States. The company has delivered positive surprises in two of last four quarters with an average beat of 20.54%. The stock carries a Zacks Rank #2.
5 Trades Could Profit "Big-League" from Trump PoliciesIf the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>