Moody's lifts Americo Life from junk

Moody's Investors Service said it upgraded the senior debt rating of Americo Life, Inc. to Baa3 from Ba1.

This concludes the review for possible upgrade that began on May 22, and the outlook is stable.

Americo continues to successfully implement its niche marketing strategy and remains focused on the economics of its business, the agency said, adding that Americo's credit strengths include strong statutory capital adequacy, a sound investment portfolio, a successful niche marketing strategy and a sizeable block of profitable life insurance policies.

Moody's said these strengths are mitigated by the company's relatively small scale of operations, concentration of distribution through a single, independent channel and potential statutory earnings volatility due to its niche market focus.

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