Financial Strength

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 18, 2014, 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 2013, Total Assets, Statutory Capital and Surplus and Net Life Insurance Premiums declined due;

Total acquisition costs in 2013 were approximately $45.7 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 $22.2 million during 2013 to $106.3 million.
Additional premiums ceded under new reinsurance contracts entered into in 2013.    

Despite the reduction in Statutory Capital and Surplus of $11.7 million during 2013, 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.

Selected Financial Information for the Years Ending December 31, 2012 and 2013 
(in millions except Face Amount of Life Insurance Inforce - in billions)

           

  Year     2012     2013
  Total Assets  $441.7  $414.6
  Statutory Capital and Surplus  $135.8  $124.1
  Net Life Insurance Premiums  $71.5  $44.3
  Face Amount of Life Insurance Inforce  $25.6  $27.9

 

*For the latest rating, access www.ambest.com