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AM Best Revises Outlooks to Positive for Oxford Life Insurance Company and Christian Fidelity Life Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--

AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of Oxford Life Insurance Company (Oxford Life) (Phoenix, AZ), and its subsidiary, Christian Fidelity Life Insurance Company (Dallas, TX), collectively referred to as Oxford Group. AM Best also has affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb” of North American Insurance Company (Madison, WI). The outlook of these Credit Ratings (ratings) is stable. These companies are owned by the group’s ultimate parent, AMERCO [NASDAQ: UHAL], which is also the parent of U-Haul International, Inc., North America’s leading “do-it-yourself” household moving and self-storage operator.

The ratings of Oxford Group reflect the group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revision to the outlooks reflect an improving business profile within the senior market by Oxford Group’s execution of its business strategy in the annuity, final expense and Medicare supplement insurance marketplace. The group has invested substantially in several innovative initiatives that have allowed for accelerated underwriting, improved distribution monitoring and other technology platforms implemented in the past year to automate previous manual workflow processes. Organic earnings growth is being driven primarily by significant multiyear guaranteed annuity sales and continuing favorable operating results from the Medicare supplement business line.

Partially offsetting these positive rating factors are the continued competitive challenges Oxford Group faces from larger insurance entities, particularly in its core markets, and some volatility in statutory earnings by line of business due to strain associated with annuity growth and ongoing spread compression.

The ratings of North American Insurance Company, which is currently in runoff, reflect its balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, very limited business profile and appropriate ERM.

This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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