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TMCNet:  A.M. Best Withdraws Credit Ratings of Zale Life Insurance Company

[July 10, 2018]

A.M. Best Withdraws Credit Ratings of Zale Life Insurance Company

A.M. Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of "bbb-" of Zale Life Insurance Company (Zale Life) (Phoenix, AZ). The outlook of these Credit Ratings (ratings) is stable. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best's interactive rating process.

The ratings reflect Zale Life's balance sheet strength, which A.M. Best categorizes as very strong, as well as its marginal operating performance, very limited business profile and appropriate enterprise risk management.

Zale Life's ratings also reflect its solid level of risk-adjusted capitalization, strong liquidity and the high credit quality of its investment portfolio. Offsetting rating factors include a very limited business profile and the immaterial levels of net premiums due to high utilization of an offshore reinsurance affiliate. Zale Life has discontinued writing its credit insurance products, which dramatically diminishes its future business and long-term profitability prospects.

This press release relates to Credit Ratings that have been published on A.M. Best's website. For all rating information relating to the release and pertinet disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit

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