FSL Insights

FIDELITY NAMED TO "TOP 50" AGAIN

Fidelity Security Life Insurance Company (FSL) has been named to the list of Top 50 life-health insurance companies in 2018 for 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, 2013 to 2017.

The Ward’s 50 has been produced since 1991 and is widely recognized for its prestige in the insurance industry. FSL has previously been named to the Top 50 list five times, from 2009 through 2013.

“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 2013 to 2017:

  • Surplus of at least $50 million. FSL’s was $204 in 2017.
  • Adjusted net income in at least four of five years. FSL had net income of $22.8 million in 2017.
  • Risk-based capital ratio of at least 150%. FSL reported a risk-based capital ratio of 1,807% in 2017.
  • Compound annual growth in premiums between -10% and +40%. FSL’s was 22% 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 10.9% 17.2% 9.5%
Return on Average Assets 2.1% 1.9% 1.1%
Net Investment Growth 30.0% 12.8% 11.1%
Surplus Growth 49.6% 23.5% 16.7%
Risk-Based Capital Ratio (Safety) 1,807% 900% 962%

On several financial performance measures, FSL not only exceeds the industry average but also the averages of Ward’s 50 companies, noted FSL President Richard F. Jones.

“This recognition illustrates the exceptional work the FSL staff performs daily to keep our company competitive and create value for our policyholders and our partners,” Jones said. “While this honor focuses on FSL, we know all the credit is shared with our business partners who collaborate with us to develop successful programs.

“Our producers allow us to perform up to our potential through their professionalism in representing FSL products in the marketplace, and our reinsurers help provide the financial foundation critical to our stability and ongoing success.”