S&P drops American Memorial

Standard & Poor's said it lowered its counterparty credit and financial strength ratings on American Memorial Life Insurance Co. and Union Security Insurance Co., which are subsidiaries of Assurant Inc., to A- from A.

The agency said it also affirmed its BBB+ counterparty credit rating on Assurant and its various ratings on Assurant's other subsidiaries.

The outlook on all these companies remains negative.

"The downgrade of American Memorial and Union Security reflects the drop in their surplus because of higher dividend activity in the past two years as well as 2008 realized investment losses," said S&P credit analyst Shellie Stoddard.

"We do not expect that these companies will return to the high levels of statutory capital from which they historically benefited."

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