A- "Excellent" Rating

An insurance rating is an opinion of the rating agency of the insurance company’s financial capacity to meet the obligations of its insurance policies in accordance with their terms.

The rating assignment of FSL is based on its niche business profile utilizing five strategic business units, its trend of positive statutory operating earnings, its adequate level of risk-adjusted capitalization, and its reduced level of financial reinsurance. The rating outlook is stable.

FSL’s business plan has evolved around providing products and services to diverse target markets utilizing a mix of independent distribution channels. The company’s portfolio of life, accident and health, and interest sensitive products are marketed through five distinct segments. The diversity of products, distribution channels, and target markets has contributed to FSL’s consistent earnings performance across all core lines of business. These results have been achieved through profitable growth from new product development and expanded distribution with both existing and new distributors.

In addition, a favorable stream of net investment income generated by its invested assets portfolio has helped to bolster the company’s earnings in each of the last seven years. Primarily as a result of retained earnings and a high credit quality bond portfolio, FSL’s current risk-adjusted capitalization supports the present level of business and investment risk.