Aviva plc today welcomed the upgrade in the AM Best financial strength rating for its US business, which will act as an important catalyst for further growth in the United States.
Ratings upgrade expected to accelerate Aviva's US sales
Aviva plc today welcomed the upgrade in the AM Best financial strength rating for its US business, which will act as an important catalyst for further growth in the United States.
AM Best confirmed an increase in the rating of the US business, formerly AmerUs, which was acquired last year, to A+ ("Superior") from A ("Excellent") as part of its annual review of the group's business. The revised rating is in line with the rating of the group's major subsidiaries and confirms the status of the US operation as an integral part of the Aviva group. AM Best assigns an A+ rating to companies that have "a superior ability to meet their ongoing obligations to policyholders."
In its press release announcing the rating, AM Best noted: "This acquisition has provided Aviva USA significant growth opportunities in the world's largest life and retirement savings market and has enhanced Aviva's geographical diversification. Additionally, as a strategically important segment and increasingly significant contributor to the overall revenue and earnings of Aviva, Aviva USA's ratings recognize the benefits derived from the financial flexibility of its parent."
Aviva USA is the market leader in the US for indexed life products and the second largest provider of indexed annuity products. It operates on a national, multi-channel distribution platform with customers in all fifty states. AM Best's upgrade indicates that customers can be confident that their investments are backed by a company with a superior financial strength rating. It also gives the company the potential to access new distribution channels, including large commercial banks, investment banks and brokerage houses, and the major US broker-dealers.
Thomas Godlasky, chief executive, Aviva North America, said: "We are very pleased with AM Best's action. The upgrade confirms the strength of our US business and recognises it as an integral part of the Aviva group. With the stronger rating in place, we should be able to accelerate the tremendous sales growth we've achieved during the past year, which was achieved, in part, from becoming part of the Aviva group. In addition, it will provide us with access to a broader distribution platform from which to sell not only our existing indexed life and annuity products but also new products that are currently under development."
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Notes to editors:
- Aviva acquired AmerUs in 2006 and it has since been rebranded Aviva.
- In the USA, Aviva delivered record sales across all business lines in the first six months of 2007. Total long-term savings increased by 51% to £1,716m and new business profit increased by 60% to £57m, both on a pro forma basis.
- Aviva is the leading provider of life and pensions to Europe with substantial positions in other markets around the world, making it the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2006.
- Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £41.5 billion and assets under management of £364 billion at 31 December 2006.
- The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.