A.M. Best Assigns Credit Ratings to Renaissance Life & Health Insurance Company of New York and Affirms Credit Ratings of Renaissance Life & Health Insurance Company of America

A.M. Best has assigned a Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of a to Renaissance Life & Health Insurance Company of New York (RLHINY) (Binghamton, NY). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of a of Renaissance Life & Health Insurance Company of America (RLHICA) (Indianapolis, IN). The outlook of these ratings is stable.

The ratings reflect RLHICA and RLHINYs balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect the support of its majority owner, Delta Dental Plan of Michigan, Inc. (DDMI).

The assigned ratings for RLHINY reflect the financial support the entity has received and the strategic importance of the entity to the group. RLHINYs New York operations are key to the organizations business development strategy in the Mid-Atlantic region. Operations in New York are being integrated fully into overall operations and management, and are necessary for regional pricing flexibility. Through the recent reinsurance and acquisition agreements with Security Mutual Insurance Company, Renaissance has added to its suite of ancillary products offered in New York. The additional product offerings combined with its dental insurance and administrative services are expected to expand Renaissances operations into new markets and with additional premium.

Furthermore, the ratings of the Renaissance entities reflect a steady trend of premium growth, which has a five-year compound annual growth rate of 19%. In addition, the entities have been consistently profitable, although earnings trended downward in 2017 and into the first half of 2018, driven by the reinsurance agreement, premium growth and increased administrative expenses related to expansion. The ratings also reflect the strength and implicit support of the majority owner, DDMI.

An offsetting rating factor includes the execution risk of the expansion strategy, as the organization moves from primarily a dental insurance writer, and begins to expand into others product offerings and geographic markets. This has placed some strain on earnings, which are significantly lower but remain profitable.


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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
David Mitchell, +1-908-439-2200, ext. 5556
Financial Analyst

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Pliss, +1-908-439-2200, ext. 5104

Associate Director
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Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations
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Peavy, +1-908-439-2200, ext. 5644

Director, Public Relations
[email protected]