Insurance ratings agency A.M. Best Co. revised the outlook to positive from stable and affirmed the financial strength rating of B+ of The Phoenix Cos. Inc.
Additionally, Best has affirmed issuer credit ratings of “bbb-” of the core life insurance entities of The Phoenix Companies, the Hartford-based life insurer that is still recovering from deep losses stemming from the 2008 financial crisis.
Best said the revised outlook reflects the positive actions taken by Phoenix’s management in improving the company’s strategy, which includes stabilizing Phoenix’s balance sheet while transforming its business profile and successfully executing new business growth.
Specifically, A.M. Best notes Phoenix’s increased capitalization levels, improved revenues and earnings, reduced surrender activity, good expense management and continued de-risking of its investment portfolio.
During the last two years, A.M. Best said the company has done a good job repositioning its annuity line by developing and offering fixed indexed annuities to the middle market. As a result,
Phoenix has experienced meaningful top line revenue growth in 2011 with deposits projected to reach approximately $1.2 billion in 2012.
