S&P: Kemper outlook stable

Standard & Poor's said it revised its outlook on Kemper Investors Life Insurance Co. to stable from negative and affirmed its A- long-term counterparty credit and financial strength ratings.

The agency said the outlook revision reflects the progress that Kemper has achieved since launching its group term life products in 2006 and the company's relative position as a strategically important member in the Zurich Financial Services Group.

The ratings are supported by management's support of Zurich Financial and affiliate Farmers New World Life to generate new business growth for group insurance products in the U.S. commercial property/casualty and small business market, S&P said. The rating also reflects Kemper's very strong capitalization and strong liquidity.

Offsetting these strengths are Kemper's very modest business profile, limited track record in the group benefit market and sales channel concentration, the agency added.

S&P keeps Sallie Mae on watch

Standard & Poor's said SLM Corp. (Sallie Mae) remains on CreditWatch with negative implications following the company's recent disclosure that the buyout group led by J.C. Flowers, Bank of America and JPMorgan Chase had decided not to proceed with its acquisition of the company at this time.

In an earlier release, the agency said it believed the BBB+ counterparty credit rating of Sallie Mae would accurately reflect the company's standalone creditworthiness in the event the transaction did not occur. S&P said it still believes that replacing funding facilities related to the merger will be challenging, especially in light of current market conditions.

However, the agency also expects Sallie Mae to maintain its strong position within the student loan industry as it benefits from economies of scale, even though core earnings will be under pressure from higher funding costs and increased reserves for the FFELP loan portfolio.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.