Don’t blindly follow an IMO’s product recommendation!
Click here to learn about the “Best FIA IMOs Won’t Tell you about”
Hint, it’s NOT offered by a B-Rated carrier!

Don’t be a Sheep!
AM Best Places Credit Ratings of SILAC Insurance Company Under Review With Developing Implications
- December 29, 2021 04:50 PM (EST)
AM Best has placed under review with developing implications the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating
of “bbb-” (Good) of SILAC Insurance Company (SILAC) (Salt Lake City, UT).
SILAC has been placed under review with developing implications as the company’s risk-adjusted capital, as measured by Best’s Capital Adequacy Ratio (BCAR), has declined to an assessed level of weak as of year-end 2020. The company’s capital was strained significantly by rapid top-line growth and an increase in below investment grade bonds in its general account investment portfolio. However, during 2021, SILAC reduced its allocation to below investment grade bonds.
SILAC has taken steps to counter the weak BCAR assessment with the receipt of a $40 million capital contribution during fourth-quarter 2021 from its parent company, SILAC, Inc., and a commitment on a $60 million surplus note to be closed in early January 2022. Additionally, SILAC has committed to increasing the internal management target of the company’s risk based capital to 600% authorized control level (ACL) (300% company action level [CAL]) from 400% ACL (200% CAL). AM Best acknowledges that SILAC has recorded favorable earnings over the past year, which has contributed positively to SILAC’s capital position. However, the company’s relatively high level of financial and reinsurance leverage somewhat diminishes the overall quality of capital for the organization, and interest expense may put some pressure on earnings over the near to medium term.
The ratings will remain under review until AM Best can fully assess the company’s capital plans, including its ability to secure additional capital and manage top-line growth to maintain an acceptable level of risk-adjusted capitalization, as measured by BCAR, for its current ratings.