Historically, Sentinel Security Life's business profile has been concentrated in the final expense market. Best's guidelines for its current ratings at year-end 2014. Sentinel Security Life's financial leverage and interest coverage ratios are projected to be within A.M. Best notes that the company benefits from the investment expertise of its key reinsurance partners. Additionally, the ratings recognize the positive performance of Sentinel Security Life's well-diversified fixed income investment portfolio that is almost entirely investment grade and currently in a net unrealized gain position. The steady growth in net premiums achieved in its creditworthy ordinary life segment and enhanced by solid new sales of its final expense products also is viewed positively by A.M. The ratings also recognize the company's diverse business profile that focuses on marketing final expense whole life insurance, Medicare supplement and select plans and fixed annuities to the senior market through a well-established, personal producing, non-captive general and associate general agent distribution network. The affirmation of the ratings reflects Sentinel Security Life's improved risk-adjusted capitalization resulting from the recent surplus note issuance, which supports the company's current rating level. The company's unfavorable net operating performance during the past two years adds to these concerns.

Best's concerns that despite a recent $10 million surplus note issuance, continued rapid growth in Sentinel Security Life's insurance businesses-especially its capital-intensive fixed annuity business-could outpace growth in capital, requiring it to seek additional capital infusions. The outlook for both ratings is negative. Best has affirmed the financial strength rating of B++ (Good) and issuer credit rating of 'bbb' of Sentinel Security Life Insurance Company (Sentinel Security Life) (Salt Lake City, UT).

Sentinel security life credit rating