AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa-" (Superior) for the property/casualty subsidiaries of Assurant, Inc. (NYSE: AIZ). The outlook for these ratings remains stable.
The rating agency cited Assurant P&C Group’s very strong balance sheet strength, strong operating performance, and favorable business profile. Despite significant dividends paid to the parent company, the group maintains the strongest level of risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR).
Rating details for subsidiaries
The affirmation covers both the property/casualty (P&C) and life/health segments. The life/health subsidiaries, collectively known as Assurant Lifestyle L&H, received an FSR of A (Excellent) and Long-Term ICRs of "a" (Excellent). These entities are considered important to the Assurant brand, particularly in the credit insurance market in Canada and Puerto Rico.
| Entity Group |
Financial Strength Rating |
Long-Term Issuer Credit Rating |
Outlook |
| Assurant P&C Group |
A+ (Superior) |
"aa-" (Superior) |
Stable |
| Assurant Lifestyle L&H |
A (Excellent) |
"a" (Excellent) |
Stable |
Key drivers behind the affirmation
Assurant P&C’s balance sheet is bolstered by consistently positive operating cash flows and stable loss reserves. These factors partially offset high underwriting leverage metrics and significant reinsurance utilization. The group’s earnings remain strong with relatively low volatility, driven by its Global Lifestyle and Global Housing segments.
The specialized niche product offerings and disciplined underwriting have contributed to rising net investment income amid the elevated interest rate environment. Additionally, fee income has supported profitability. The business profile assessment reflects excellent niche market positioning and deep client relationships through a unique business-to-business-to-consumer distribution model.
What the numbers show
A distinct divergence exists between the capital retention strategy and the operational performance metrics. While Assurant P&C pays significant dividends to its parent, it simultaneously maintains a BCAR target above AM Best’s minimum requirement for the strongest category. This indicates that excess capital is strategically deployed to fund shareholder returns while preserving financial flexibility for the broader organization, rather than being retained solely for buffer purposes.
Affirmed issue ratings
AM Best also affirmed various Long-Term Issue Credit Ratings for Assurant, Inc., including senior unsecured bonds and subordinated debt. The Short-Term Issuer Credit Rating for commercial paper was affirmed at AMB-1+ (Strongest).
| Instrument Type |
Amount / Description |
Coupon |
Maturity |
Rating |
| Senior Unsecured Bond |
$300 million |
4.90% |
2028 |
"a-" (Excellent) |
| Senior Unsecured Bond |
$350 million |
3.70% |
2030 |
"a-" (Excellent) |
| Senior Unsecured Bond |
$475 million ($275m outstanding) |
6.75% |
2034 |
"a-" (Excellent) |
| Subordinated Bond |
$400 million |
7.00% |
2048 |
"bbb+" (Good) |
| Subordinated Bond |
$250 million |
5.25% |
2061 |
"bbb+" (Good) |