Ratings Updates

Entries for October 2009

 1. ING announced they would split their banking and insurance groups.  No particular concern for policyholders at this point in our view but will watch the transaction as it progresses.

2. Recent studies indicate costs for providing long term care
continued to rise at a rate of 3-5%.  We emphasize the vital importance of making plans for the potential impact of a family member needing such care.  Insurance products may or may not be appropriate - having a plan is essential.
3. Swiss Re, one of the premier reinsurers to the life insurance industry, recently commented that US reserving rules coupled with the financial crisis will force insurers to raise term life insurance prices.  We had previously reported the reality of increasing prices for some companies and would suggest that you encourage those clients currently considering additional coverage to move ahead soon for the most favorable premium rates.
4. Life Settlements:  The Securities and Exchange Commission plans to take a closer look at the life settlements industry to make certain there are adequate disclosures, especially for seniors.  Also, California recently enacted legislation regulating life settlements and restricting the sale of STOLI (stranger owned life insurance) where unrelated third parties induce a sale for future life settlement.
If you would like more information about these or any other topics related to life insurance please give us a call at 205.414.9955.  We look forward to being of service.

For the month of October 2009 


AM Best



Conseco Companies

Bw to B



ING Companies



A1w to A2

MassMutual Companies



Aa1 to Aa2