Investing.com -- AM Best has confirmed the credit ratings of OneMain Holdings (NYSE: OMF ), Inc.’s insurance subsidiaries, American Health and Life Insurance (NSE: LIFI ) Company (AHLIC) and Triton Insurance Company (Triton). Both AHLIC and Triton are based in Fort Worth, Texas, and are wholly owned by OneMain Holdings, Inc. [NYSE: OMF], headquartered in Evansville, Indiana. The Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Ratings of "bbb" (Good) have been maintained for both companies, with a stable outlook for these credit ratings.
The ratings for AHLIC are based on its strong balance sheet, which AM Best evaluates as very strong. The ratings also consider AHLIC’s strong operating performance, neutral business profile, and suitable enterprise risk management (ERM). However, the ratings also take into account the financial leverage of its parent company, OneMain, a consumer finance company. AHLIC and Triton rely on OneMain as a primary distribution source and both continue to have a significant concentration in credit insurance products. AHLIC also offers term life insurance, which adds some diversity to its relatively narrow product portfolio. AM Best notes that AHLIC consistently maintains the highest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and regularly shows favorable operating performance compared to peers and industry benchmarks.
Similarly, Triton’s ratings reflect its very strong balance sheet, strong operating performance, neutral business profile, and appropriate ERM. Triton also maintains the strongest level of risk-adjusted capitalization, as measured by BCAR, and has reported strong operating results in recent years.
Finally, AM Best has considered the financial constraints of AHLIC and Triton in terms of dividends in the ratings, as these constraints might put pressure on risk-adjusted capitalization in the future. Both companies continued to pay dividends in 2024, while managing target capital levels.
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