Fitch Ratings has affirmed an 'A' long-term issuer default rating of Protective Life Corporation, and ‘AA-’ for its life insurance subsidiaries.
The agency also maintains an 'AA-' insurer financial strength (IFS) rating, and a 'stable' rating outlook for Protective Life.
The ratings follow the recent affirmation of Protective Life's parent company, Dai-ichi Life, with an 'AA-' IFS ratings and a ‘stable’ outlook.
According to Fitch, Protective Life's ratings benefit from Dai-ichi Life's greater resources and stronger credit profile, as well as financial flexibility and access to more acquisition opportunities.
Fitch assesses Protective Life's standalone credit quality as in line with an 'A' IFS rating, reflecting the company's moderate business profile, strong balance sheet fundamentals based on very strong risk-based capitalisation and above-average exposure to reserve financing.
The ratings also reflect stable earnings, solid debt service and relatively low investment risk.
Fitch categorises Protective Life's overall company profile as ‘moderate’, with its well diversified structure across life, annuity, stable value and asset protection products.
The agency views Protective Life's underlying profitability as stable and consistent with rating expectations, its capitalisation as ‘very strong’ based on its Prism capital model score and its profitable lead operating subsidiary, Protective Life Insurance.
