Recent Ratings Announcements Not in Unison
Standard & Poor’s (S&P) and Moody’s announced ratings downgrades last week for Allstate Insurance Company (AIC) and Allstate Life Insurance Company (ALIC). A.M. Best, however, did not follow suit and today reaffirmed its rating for both AIC and ALIC, as well as The Allstate Corporation.
A summary of the ratings announcements are:
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A.M. Best affirmed its A+ financial strength ratings on AIC and ALIC, as well as its long-term issuer credit ratings of aa- on the holding company, The Allstate Corporation. |
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Moody’s downgraded its rating on AIC one notch, to Aa3 from Aa2, and the rating on ALIC one notch to A1 from Aa3. Moody’s also downgraded the holding company by one notch, to A3 from A2. |
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S&P downgraded its ratings on AIC and ALIC one notch, to AA- from AA. S&P also downgraded the holding company two notches, to A- from A+. |
While the changes in ratings from S&P and Moody’s are a disappointment, the ratings remain investment grade and should in no way affect our ability to serve customers or change the fact that Allstate is well-capitalized and financially strong.
Today’s economic times are without a doubt challenging. It’s a storm that corporations and individuals alike are weathering. But, for more than 50 years, Allstate has been in the business of protecting and preparing its customers for times just like this. It isn’t a short-term approach, but rather a way of doing business each and every day that positions Allstate to have:
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A low debt-to-capital ratio of 30.9% (as of December 31, 2008) |
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Strong liquidity with $6.4 billion in same day/next day liquidity |
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Access to a long-term, untapped revolving $1 billion line of credit from a group of 12 banks through 2012 |
More importantly, it puts Allstate and Lincoln Benefit Life in a position to stand by our commitments to you and your customers not just for today but for the future as well.
• View ratings memo from Allstate Financial President, George Ruebenson
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