AM Best Upgrades Credit Ratings of Lewer Life Insurance Company

BY Business Wire | CORPORATE | 11/29/22 11:25 AM EST

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to ?bbb? (Good) from ?bbb-? (Good) of Lewer Life Insurance Company (Lewer Life) (Kansas City, MO). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

These ratings reflect Lewer Life?s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, very limited business profile and appropriate enterprise risk management (ERM).

The rating upgrades reflect the improvement in Lewer Life?s ERM program, which has evolved over the past two years into a more formalized process with an appropriate framework. The company has internally identified a chief risk officer and implemented numerous ERM initiatives, which have favorably impacted various aspects of its risk assessment, including documented risk appetites and tolerances.

Lewer Life?s balance sheet strength assessment of very strong is based on its strongest level of risk-adjusted capitalization, as measured by Best?s Capital Adequacy Ratio (BCAR), partially offset by a relatively low level of absolute capital and surplus. Adequate operating performance reflects pre-tax net operating gains reported in four of the past five years, with moderated pre-tax results reported in 2021 driven by COVID-19 vaccination and testing claims for the 2020/2021 policy year, as well as the prepayment of claims before premium collection. The company?s fluctuating net premium in recent years was driven by travel restrictions from the COVID-19 pandemic impacting the international student population studying in the U.S. during 2020 and part of 2021 and, to a much lesser extent, a continuing decrease in life insurance and annuity premium from redemptions and dental group premium. Lewer Life?s very limited business profile reflects its nominal market share and premium concentration in the highly competitive international student health insurance market, which has significant exposure to regulatory, event and market risks.

This press release relates to Credit Ratings that have been published on AM Best?s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best?s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best?s Credit Ratings, Best?s Performance Assessments, Best?s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best?s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright ? 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Source: AM Best

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.