AM Best has downgraded the Financial Strength Rating to B (Fair) from B+ (Good) and the Long-Term Issuer Credit Rating to “bb+” (Fair) from “bbb-” (Good) of Life Insurance Company of Louisiana (LICOL) (Shreveport, LA). The outlooks of these Credit Ratings (ratings) is stable.

The ratings reflect LICOL’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, very limited business profile and appropriate enterprise risk management.

Driving the downgrading of the ratings is the deterioration in the company’s business profile metrics, which includes the lack of production in business growth. Also, competitive pressures and challenges within the credit life segment are contributing to very limited growth opportunities. In addition, the company’s operations have seen added volatility that stems from supply chain issues in the auto industry. LICOL’s absolute capital levels have continued steady despite operational pressures. Although risk-adjusted capitalization remains within the strongest category, as measured by Best’s Capital Adequacy Ratio (BCAR), the low amount of absolute capital exposes the company to sharper swings in risk-adjusted capital levels.

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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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