OneAmerica affirmed by Standard & Poor’s
Contact:
Beth King, APR, Media Relations Manager
(317) 285-4168 or beth.king@oneamerica.com
For Immediate Release:
Indianapolis (February 27, 2009) – Standard & Poor’s today affirmed the ratings of OneAmerica and its life operating companies, American United Life and State Life1, with a stable outlook. The financial strength ratings of the insurance companies remain at AA- (Very Strong).
“Standard and Poor’s action today is further evidence that OneAmerica has weathered the financial storm better than the vast majority of its peers in the industry,” said OneAmerica Chairman, President and CEO Dayton H. Molendorp. “As a mutual organization controlled by our customers, OneAmerica has been able to stay focused on building long-term value for policyholders through good times and bad. The ratings affirmation reflects OneAmerica’s commitment to unquestioned financial strength and stewardship of the money entrusted to us. Our strength allows us to continue to strive for business growth and better ways to serve our customers.”
Since first quarter 2008, approximately 60 percent of life insurance groups with more than $10 billion in assets have been subject to a negative rating action, such as a downgrade or a change in rating outlook. Less than 10 percent have had a positive action in that same time period. OneAmerica, which was upgraded by Moody’s last October, is among the small number of companies with positive ratings momentum during the economic crisis.
Standard and Poor’s action comes after a detailed review of the asset portfolio and preliminary year-end financial results of the OneAmerica companies. “The 2008 financials will demonstrate that OneAmerica continues to have a very solid balance sheet with extremely strong capital adequacy and one of the strongest investment portfolios in the insurance industry,” said OneAmerica Chief Financial Officer Scott Davison. “Despite the historic upheaval in the credit markets, asset impairments were modest and among the very lowest of our life insurance peers. In addition, we were solidly profitable in 2008 despite earnings being lower than the previous year due to the significant stock market decline.” The 2008 financial statements for the OneAmerica companies will be available in late March after the audit process has been completed.
Molendorp added, “While we are proud of our financial position and the independent validation provided by Standard and Poor’s, we are even more proud of the confidence our customers have shown in us. In 2008, sales and customer retention reached record levels. Increasingly, OneAmerica is viewed by customers as a safe harbor for the long term.”
- 1.
- OneAmerica’s third insurance operating subsidiary, Pioneer Mutual Life is not rated by Standard and Poor’s. Pioneer is rated A “Excellent” by AM Best.
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