(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 Fidelity Security Life Insurance Co. (FSL).
The ratings on FSL are based on the company's good capital adequacy and steadily improving operating performance. Return on revenue for 2011 was 10.9%, compared with 7.8% for 2010 and 3.9% in 2009. Offsetting these strengths is the company's limited business profile, which is concentrated in the group accident and health segment (about 61% of net written premiums in 2011).
Based in Kansas City, Mo., FSL primarily writes group accident and health insurance but also offers life insurance and annuity contracts. The company began operations in 1969 and is authorized to do business in all 50 states and the District of Columbia. We rate FSL on a stand-alone basis.
Related Criteria And Research Ratings Bearing A "pi" Subscript: Methodology And Assumptions, Feb. 9, 2011 Ratings List Ratings Affirmed Fidelity Security Life Insurance Co. Counterparty Credit Rating Financial Strength Rating BBBpi
(Caryn Trokie, New York Ratings Unit)