Fidelity Life offers the security of an A- (Excellent) rating from A.M. Best, the leading provider of ratings, news and financial data for insurance companies. This rating was reaffirmed on June 13, 2013, with a Stable Outlook.*
A.M. Best financial strength ratings are based on evaluations of a company’s balance sheet, operating performance and business profile, and constitute an opinion of an insurer’s financial strength and ability to meet obligations to its policyholders.
Fidelity Life continues to maintain a strong capital position. In 2012, Total Assets and Statutory Capital and Surplus declined due;
- Total acquisition costs in 2012 were approximately $54.5 million. Under Statutory accounting, these acquisition costs are recorded as a period expense. Under Generally Accepted Accounting Principles (GAAP) incremental, direct first year policy acquisition costs related to successful sales efforts are recorded as an asset and recorded as expense over the anticipated premium period of the underlying insurance contracts.
- Our assumed annuity liability balance declined by $6.0 million during 2012 to $128.5 million.
- The dividend to LifeStory interactive of $15 million was paid in December, 2012.
Despite the reduction in Statutory Capital and Surplus of $39.5 million during 2012, Fidelity Life remains well in excess of required levels of Statutory Capital and Surplus to support its assets and liabilities.
The summarized financial information shown in the table below is developed from the statutory basis financial statements filed annually with the Illinois Department of Insurance. These financial statements are prepared on the basis of statutory accounting practices which differ from financial statements prepared in accordance with GAAP. For information on the GAAP basis consolidated financial statements of the MMHC Group, please see the 2012 Annual Report.
Selected Financial Information for the Years Ending December 31, 2011 and 2012
(in millions except Face Amount of Life Insurance Inforce - in billions)
|Statutory Capital and Surplus||$175.3||$135.8|
|Net Life Insurance Premiums||$57.7||$71.5|
|Face Amount of Life Insurance Inforce||$24.2||$25.6|
*For the latest rating, access www.ambest.com