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AM Best Upgrades Credit Ratings of Fidelity Security Life Insurance Company and Its Subsidiary
[June 11, 2019]

AM Best Upgrades Credit Ratings of Fidelity Security Life Insurance Company and Its Subsidiary

AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to "a" from "a-" of Fidelity Security Life Insurance Company (FSL) (Kansas City, MO) and its wholly owned subsidiary, Fidelity Security Life Insurance Company of New York (FLSNY) (Brewster, NY). The outlook of these Credit Ratings (ratings) remains stable. These companies are known collectively as Fidelity Security Group.

The ratings reflect Fidelity Security Group's balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The group's ratings are supported by its strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), its strong liquidity, and its ability to generate consistent earnings growth and relatively strong statutory returns on equity. FSL primarily markets group stop loss and group vision, but also markets a variety of ordinary life, annuity, and accident and health products across all 50 states through various distribution channels. A mitigating factor in the group's ratings includes its high reinsurance leverage, particularly in its vision business in which a large percentage of the direct premium is ceded to one reinsurance partner. AM Best notes, however, tat all reinsurance partners of FSL are highly rated or are distribution-owned captives with full collateralization.

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 Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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