Ratings Updates

Entries for July 2012

Welcome to what may well be a long hot summer!


There were two ratings changes of note this past month:

  • Genworth was downgraded by Moody's from A2 to A3.
  • Principal was upgraded by S&P from A to A+.

The big news this month in the insurance world - and maybe the business world in general for the US - was the Supreme Court decision on "Obamacare". Since more has been written about the decision than any one person would care to ever read, we will resist offering any additional commentary. Watching the various spins on the decision from both sides has been interesting to watch - and to realize it is no wonder we are having fiscal problems in our country. So much for no tax increases on the middle class - and so much for those who prefer less government rather than more. November should be interesting indeed.


Of course, the month also saw Moody's downgrade many of the major banks - so the life insurance industry can now enjoy some company with others held in disfavor by the ratings agencies.


One life insurance news note involved a provision in the Surface Transportation Extension Act of 2012 which will allow certain overfunded defined benefit pension plans to purchase retiree life insurance.


On a personal note, I was comforted by an article that indicated over 90% of the baby boomers are providing financial support for their adult children. Misery loves company!


Recent projects here have included:

  • Helping to find ways to maximize death benefits from existing policies while reducing the cash flow requirements
  • Developing strategies for maximizing policies that were issued at a time when the insured was in better health, and
  • Clarifying competing offerings for new coverage that were not comparable and challenging to compare.

Please call us @ 205-414-9955 if you need an objective look at any life insurance issues for you or your clients.