The A-plus financial strength rating for IDS Life Insurance Co. in Minneapolis and its subsidiaries has been affirmed, according to A.M. Best Co. in Oldwick, N.J.
IDS Life is a subsidiary of American Express Financial Corp., which is a unit of American Express Co., the New York financial services company. Its rating outlook remains stable, Best said on Friday.
The rating for IDS Life was based on the consolidated financial strength and operating performance of the company and the following subsidiaries: IDS Life Insurance Co. of New York, American Centurion Life Assurance Co., American Enterprise Life Insurance Co., and American Partners Life Insurance Co. (Arizona).
The rating reflects the group's consistent operating performance, solid liquidity position, improvement in asset quality and emphasis, and control of the size of its high-yield portfolio.
Partially offsetting these factors are the company's continued exposure to interest rate risk, below average level of risk-adjusted capital, and the obstacles to continued expansion of the group's core financial adviser distribution network.
