AM Best Upgrades Credit Ratings of Oxford Life Insurance Company and Christian Fidelity Life Insurance Company

AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of Oxford Life Insurance Company (Oxford Life) (Phoenix, AZ), and its subsidiary, Christian Fidelity Life Insurance Company (Dallas, TX), which are collectively referred to as Oxford Group. The outlook of these Credit Ratings (ratings) has been revised to stable from positive. Concurrently, AM Best has affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb” (Good) of North American Insurance Company (Madison, WI). The outlook of these ratings is stable. These companies are owned by the group’s ultimate parent, AMERCO [NASDAQ: UHAL], which is also the parent of U-Haul International, Inc., North America’s leading “do-it-yourself” household moving and self-storage operator.

The ratings of Oxford Group reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The rating upgrades reflect Oxford’s increasingly diversified business profile within the senior market. Oxford is a multi-state, multi-line writer offering multi-year guaranteed annuities, fixed annuities, final expense and Medicare supplement products. The ratings are supported by Oxford’s risk-adjusted capitalization, which AM Best considers to be at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as consistent surplus growth. Due to significant growth in the group’s annuity business in recent years, approximately 85% of total reserves are interest sensitive, exposing Oxford to more interest rate and market risk. Investment income and positive earnings in its annuity and Medicare supplement lines of business continue to drive the group’s consistent operating performance.

The ratings of North American Insurance Company, which is currently in runoff, reflect its balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, very limited business profile and appropriate ERM.

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 Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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