AM Best Revises Outlooks For Oceanview
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating [FSR] of A- [Excellent] and the Long-Term Issuer Credit Ratings [Long-Term ICR] of “a-” [Excellent] of Oceanview Life and Annuity Company [Oceanview Life] [Denver, CO] and its reinsurer affiliate, Oceanview Reinsurance Ltd. [Oceanview Re] [Hamilton, Bermuda].
A statement from the ratings agency said, “The ratings of Oceanview Life reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management [ERM].
“The ratings of Oceanview Re reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.
“Oceanview Life’s positive outlooks reflect AM Best’s expectation that the company’s risk-adjusted capitalization will remain at the strongest level, as measured by Best’s Capital Adequacy Ratio [BCAR]. Oceanview Life benefits from a strong parent, Oceanview Holdings Ltd., which has been able to provide capital as necessary through Oceanview Life’s initial years of operation. Continued execution of Oceanview Life’s business plan is further supported by the very strong level of risk-adjusted capitalization at Oceanview Re, and the capacity to reduce new business strain at Oceanview Life, if needed.
“Oceanview Life and Oceanview Re benefit from the expertise of their investment team and the ability to source mortgage loans that have a good balance between quality, liquidity and yield, resulting in good spreads in a challenging investment environment. AM Best will continue to monitor the operating performance of Oceanview Life, including good top line growth and expectations of statutory profitability that will improve the overall balance sheet strength of the rating unit going forward.”
