A.M. Best Affirms Credit Ratings of Louisiana Dealer Services Insurance Inc and Subsidiaries

A.M. Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of a- of Louisiana Dealer Services Insurance Inc (Baton Rouge, LA) and its five subsidiaries, collectively referred to as The LDS Group. The outlook of these Credit Ratings (ratings) is stable. See below for a detailed listing of subsidiaries.

The ratings reflect The LDS Groups balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The rating affirmations of The LDS Group recognize its historical profitability, strong capitalization, and established market position as a vehicle service contract provider, mechanical breakdown insurer and credit life and credit disability insurer in Louisiana and Mississippi. The ratings also recognize each companies role within the group, and the purposes they serve in their respective states, as well as the same inherent benefits afforded by common management, marketing and shared services.

The group has consistently produced favorable underwriting results, which have been complemented by a stable level of investment income. A profitable overall earnings trend and relatively modest dividend requirements have contributed to surplus growth and a sustained solid level of risk-adjusted capitalization.

While recognizing the groups solid capital position and consistent profitability, A.M. Best notes that growth within the enterprise depends upon the health and strength of the economy, specifically domestic auto sales. A.M. Best also notes that while auto sales have improved over the past few years, a potential decrease in consumer activity can adversely impact the associated opportunities to market these companies core credit products.


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The stable outlooks reflect A.M. Bests expectation that the companys rating fundamentals will remain unchanged over the medium term.

Negative rating actions could occur if there is a material reduction in The LDS Groups risk-adjusted capitalization. Negative rating action also could occur should operating performance deteriorate over a period of time. This may occur should underwriting standards decline, pricing becomes inadequate, or if claims frequency and severity trend upward.

The FSR of A- (Excellent) and the Long-Term ICRs of a-, each with a stable outlook have been affirmed for the subsidiaries of Louisiana Dealer Services Insurance Inc:

  • First Assurance Life of America
  • Loss Deficiency Surety Insurance Company, Inc.
  • Performance Life of America
  • Versant Casualty Insurance Company
  • Versant Life Insurance Company

This press release relates to Credit Ratings that have been published on A.M. Bests 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 A.M. Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and A.M. Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

A.M. Best
Alexander K. Sarfo
Senior Financial

+1 908 439 2200, ext. 5779
[email protected]
Miller, CFA

Senior Financial Analyst—L/H
+1 908
439 2200, ext. 5187

[email protected]

Manager, Public Relations
+1 908 439
2200, ext. 5159

[email protected]

Director, Public Relations
+1 908 439
2200, ext. 5644

[email protected]