Security Benefit remains secure
Life insurance company sees financial ratings decline
9:09 p.m. Tuesday, July 1, 2008
Topeka — One of Topeka's major companies has seen its financial ratings downgraded by analysts.
Security Benefit Life Insurance Company was cited for too many of its investments in risky, sub-prime, mortgage-backed securities.
Officials at the State Insurance Commissioner's office say they were aware of the new ratings for Security Benefit and are keeping an eye on it.
"We pay attention to it," said Assistant Kansas Insurance Commissioner Bob Tomlinson. "Because we are charged not only with the amount of money that they base in their risk capital that guarantee that they have against the claims, but we're also interested in the quality of the reserves that are there."
And it's something the insurance commissioners office keeps tabs on, for every insurance company that does business in the state.
"This is something we would and have asked about," said Tomlinson. "And we subscribe to the ratings services and we will know when they have questions and follow through."
Security Benefit responded to our questions with a written statement.
In it, the company says:
"We have openly addressed rating changes with our clients and associates. Security Benefit Life remains a financially strong company fully capable of meeting its obligations."
State regulators agree.
"They meet the risk standards of the law," said Tomlinson. "And we'll continue to monitor it and if at any time they don't, we have the power to take corrective action to make sure that they do."
Some of the possible actions could include asking for a revised business plan, or asking for more frequent financial reports from the company.
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