Moody's ups Americo view to stable

Moody's Investors Service said it affirmed the Baa3 senior debt rating of Americo Life, Inc. and the A3 insurance financial strength rating of its operating subsidiary, Americo Financial Life and Annuity Insurance Co.

The outlook was changed to stable from negative.

Americo Financial is a wholly owned subsidiary of Americo, which is a wholly owned subsidiary of privately held Financial Holding Corp.

The outlook change was driven by the company's improvement in regulatory capital as well as an expectation of improved operating earnings and more modest investment losses going forward, Moody's said.

Americo's prudent management actions, including reducing sales volumes, utilizing reinsurance to manage new business strain, and cost reductions helped the company manage through the financial downturn with minimal impact on its capital adequacy and financial flexibility, the agency said.

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