Moody's rates AmerUs preferreds Ba2

Moody's Investors Service said it assigned a Ba2 rating to AmerUs Group Co.'s issuance of non-cumulative perpetual preferred stock. The outlook for the preferred stock ratings is negative, in line with other AmerUs ratings.

The proceeds of the preferred stock will be used primarily to retire debt and to buy back shares of AmerUs' common stock.

Moody's noted that AmerUs' ratings are based on its growing presence in the fixed annuity market through American Investors Life, its profitable and growing block of life insurance, the relatively high margins on its equity-indexed products and its limited exposure to mortgages and real estate. These strengths are mitigated by the group's significant and growing reliance on equity-indexed products for new sales, modest consolidated profitability, earnings growth and statutory capitalization (albeit improving), and a relatively high level of balance sheet intangibles.

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