Moody's lifts Americo Life view to positive

Moody's Investors Service said it affirmed the Ba1 senior unsecured debt rating of Americo Life, Inc. and changed the outlook to positive from stable.

The agency said that the change in the outlook reflects Americo's continued development of its niche marketing strategy and its improved ability to compete in its chosen niches of mortgage insurance, final expense insurance and annuities for seniors. In addition, the company has made progress in streamlining its operations, resulting in a low unit costs and better profitability.

The ratings are supported by Americo's good statutory capital adequacy, moderate financial leverage, a sound investment portfolio, a sizeable block of profitable life insurance policies and its private ownership, Moody's said.

Americo's strengths are mitigated by the relatively small scale of its operations, concentration of distribution through a single, independent channel and potential statutory earnings volatility due to its niche market focus, Moody's added.

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