FSL Insights

FSL Reaffirms Its "A"

After more than two decades of impressive growth and sustained profitability, Fidelity Security Life was rewarded with an A (Excellent) Financial Strength Rating from A.M. Best Company. The change was approved by Best's Rating Committee in June 2019 and has been reaffirmed by the Committee annually ever since.

A.M. Best is one of the four leading rating agencies for U.S. insurance companies. Best’s Financial Strength Rating is an opinion of an insurer’s ability to meet its obligations to policyholders. Ratings range from D (Poor) to A++ (Superior). Of more than 2,000 life insurance companies in the U.S., fewer than 8% — approximately 160 — are rated A or higher.

“We’re pleased that A.M. Best has recognized what we’ve felt for quite some time — that Fidelity Security Life is one of the strongest insurers in the nation based on our business model and capitalization,” said Bryce Jones, FSL President.

Jones noted that A.M. Best has created its own financial model for assessing financial strength — called Best’s Capital Adequacy Ratio or BCAR — and has set a BCAR rating of 25 as the minimum threshold for companies with an A++ rating. 

Fidelity’s BCAR for 2023 was 75, and for more than a decade has been far above Best’s threshold for top-rated companies, he said.

“What this means is that FSL is extremely well qualified to meet the financial needs of policyholders as well as our obligations to our distribution and reinsurance partners — even under the most stressful financial scenarios,” Jones said.

“Our slogan is, ‘Come Build With Us.’ This rating decision demonstrates that Fidelity has a solid foundation to support continued growth of existing programs as well as build successful new partner relationships.”

Fidelity Security Life is a specialty insurance underwriter based in Kansas City, Missouri, with depth of expertise in life, disability, supplemental health, annuity, and stop-loss. The Company manages more than $1 billion in assets, collects more than $1.5 billion in total premium annually, and boasts capital & surplus exceeding $348 million.  

Fidelity was established in 1969 and today is wholly owned and managed by second and third-generation members of the Jones family.