Rating remains AA- (Very Strong) despite turbulent national economic conditions
Jim Gavin, Media Relations Manager
(317) 285-4168 or jim.gavin@oneamerica.com
For Immediate Release:
Indianapolis (August 4, 2011) – Standard & Poor’s has affirmed its ratings of OneAmerica and its life insurance operating companies, American United Life Insurance Company® (AUL) and The State Life Insurance Company and maintains a stable outlook. For the nineteenth consecutive year, the financial strength ratings of the insurance companies remain at AA- (Very Strong)1. In May, A.M. Best Co. upgraded its financial strength rating of AUL, State Life, and Pioneer Mutual Life Insurance Company (PML) to A+ (Superior).2 3
“Unquestioned financial strength remains important in these uncertain times,” said Dayton H. Molendorp, chairman, president and CEO of OneAmerica. “The ratings agencies recognize that, despite a challenging environment, OneAmerica is well-positioned to meet its obligations. Simply put, we are here to deliver on the promises we’ve made to our policyholders today and for the future.”
In a report issued today, Standard & Poor’s made several observations about OneAmerica, including:
• Very strong capital adequacy as evidenced by ‘AAA’ level redundancy according to Standard & Poor’s insurance risk-based capital model
• Diverse business profile supported by above-average growth in key business segments
• Strong liquidity profile supported by a high-quality and very conservatively managed investment portfolio
• OneAmerica’s management has increasingly pursued conservative operating and risk-management practices.
• OneAmerica’s investment management is very strong, with this strength demonstrated by the company's asset allocation, low tolerance for risk, and history of very strong investment yields.
• The mutual insurance holding company structure provides the financial flexibility to access capital markets if the need arises.
• OneAmerica’s long-term strategy to emphasize policyholder value protection while striving to maintain a strong balance sheet, profitable growth and geographic expansion
Standard & Poor’s also noted individual life and whole life insurance sales growth of 39 and 65 percent respectively in 2010, along with 401(k) first year asset growth of 20 percent. In the first half of 2011, total sales for the enterprise are up 39 percent over the same period in 2010.
“We remain committed to protecting our customers and creating value for them, and we do this by adhering to a long-term strategy that preserves our mutual values,” said Molendorp. “As Standard & Poor’s noted, this strategy has served us well amid turbulent market conditions.”
1. This is the fourth highest of 21 possible ratings
2. This is the second highest of 16 possible ratings
3. PML, OneAmerica’s third insurance operating subsidiary, is not rated by Standard and Poor’s.
About AUL
American United Life Insurance Company® (AUL) is the founding member of OneAmerica® and is focused on providing a strong portfolio of products for individuals, families and small businesses. AUL uses a national network of experienced professionals utilizing an extensive menu of financial products, including life insurance, annuities and employee benefit plan products. The company helps consumers prepare for tomorrow by helping to protect their financial futures.
About OneAmerica
OneAmerica Financial Partners, Inc., is headquartered in Indianapolis, IN. The companies of OneAmerica® can trace their solid foundations back more than 130 years in the insurance and financial services marketplace.
OneAmerica’s nationwide network of companies offers a variety of products to serve the financial needs of their policyholders and other clients. These products include retirement plan products and services; individual life insurance, annuities, long-term care solutions and employee benefit plan products. The goal of OneAmerica is to blend the strengths of each company to achieve greater collective results.
The products of the OneAmerica companies are distributed through a network of employees, agents, brokers and other distribution sources that are committed to increasing value to our policyholders by helping them prepare to meet their financial goals.
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