TEXT-S&P affirms Homesteaders Life Co
(The following statement was released by the rating agency)
Rating Action On Sept. 21, 2012, Standard & Poor's Ratings Services affirmed its 'BBBpi' counterparty credit and financial strength ratings on Homesteaders Life Co. (HLC).
The ratings on HLC primarily reflect the company's improved operating performance as indicated by pretax income and return on assets (ROA), and strong capitalization. Homesteaders' operating performance has shown a strong positive trend during the past few years, with an ROA of 1.28% for 2011, relative to 1.29% and 1.08% for 2010 and 2009, respectively. HLC's strong liquidity ratio as measured by our model further supports the ratings.
Based in Des Moines, Iowa, HLC primarily offers group life products, with a focus on preneed and final-expense insurance. The company also offers, to a much lesser extent, individual life insurance and annuities. HLC began operations in 1906 and is licensed in 49 states and the District of Columbia. We rate the company on a stand-alone basis.
Related Criteria And Research Ratings Bearing A "pi" Subscript: Methodology And Assumptions, Feb. 9, 2011 Ratings List Ratings Affirmed Homesteaders Life Co. Counterparty Credit Rating Financial Strength Rating BBBpi
(Caryn Trokie, New York Ratings Unit)