FSL Insights

FIDELITY NAMED TO "TOP 50" AGAIN

Fidelity Security Life Insurance Company (FSL) again in 2019 has been named to the list of Top 50 life-health insurance companies in the U.S. by virtue of its “outstanding financial results in the areas of safety, consistency, and performance over a five-year period.”

The list, known as the Ward’s 50, was released by Aon plc, a leading global professional services firm that operates the Ward’s 50 benchmark group. The group analyzes more than 700 U.S.-based life-health insurers.

In order to make the list, each company must pass minimum thresholds for safety and consistency as well as excel in financial performance measurements over five years, 2014 to 2018.

"On several financial performance measures, FSL not only surpassed the industry average but also the average of the other Ward's 50 companies," said FSL President Richard F. Jones. "By making this list on a consistent basis, it shows how all of our associates perform at a high level every day to keep FSL competitive and to create value for our policyholders and partners. 

"This honor focuses on FSL, but we know the credit is shared with our business partners who collaborate with us to develop successful programs. Our producers allow us to reach our maximum potential through their professionalism in representing FSL products in the marketplace. In addition, our reinsurance partners help provide the solid financial foundation critical to our stability and ongoing success."

The Ward’s 50 has been produced since 1991 and is widely recognized for its prestige in the insurance industry. This is the seventh time in the last 11 years that FSL has been included in the list.

“In selecting the Ward’s 50, we identified companies that pass financial stability requirements and measure their ability to grow while maintaining strong capital positions and underwriting results,” said Jeff Rieder, partner and head of Ward benchmarking at Aon.

In the safety and consistency portion of the Ward’s benchmark testing, FSL met the following criteria annually from 2014 to 2018:

  • Surplus of at least $50 million. FSL’s capital & surplus was $242 million in 2018.
  • Adjusted net income in at least four of five years. FSL had net income of $39.9 million in 2018.
  • Risk-based capital ratio of at least 150%. FSL reported a risk-based capital ratio of 1,834% in 2018.
  • Compound annual growth in premiums between -10% and +40%. FSL’s was 6.7% over the five-year period.

The table below illustrates FSL’s results in performance measures compared to Ward’s 50 members and the industry at large.

FIVE-YEAR AVERAGE
FSL Ward's 50 Industry
Return on Average Equity 12.5% 18.5% 9.1%
Return on Average Assets 2.6% 2.0% 1.1%
Net Investment Growth 20.5% 4.1% 9.5%
Surplus Growth 57.7% 14.4% 11.8%
Risk-Based Capital Ratio (Safety) 1,500% 866% 933%