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AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Ratings of 'bbb' (Good) for OneMain Holdings' (NYSE: OMF) insurance subsidiaries - American Health and Life Insurance Company (AHLIC) and Triton Insurance Company.
Both subsidiaries demonstrate very strong balance sheet strength, strong operating performance, neutral business profile, and appropriate enterprise risk management. They maintain the strongest level of risk-adjusted capitalization according to Best's Capital Adequacy Ratio (BCAR). However, the ratings reflect drag from parent company OneMain due to its considerable financial leverage.
While both companies continued paying dividends in 2024 while managing target capital levels, AM Best notes potential financial constraints on dividends that may impact future risk-adjusted capitalization.
AM Best ha confermato il Rating di Solidità Finanziaria di B++ (Buono) e i Rating di Credito dell'Emittente a Lungo Termine di 'bbb' (Buono) per le sussidiarie assicurative di OneMain Holdings' (NYSE: OMF) - American Health and Life Insurance Company (AHLIC) e Triton Insurance Company.
Entrambe le sussidiarie dimostrano una forza patrimoniale molto forte, una solida performance operativa, un profilo aziendale neutro e una gestione del rischio d'impresa adeguata. Mantengono il livello più elevato di capitalizzazione aggiustata per il rischio secondo il Rapporto di Adeguatezza Patrimoniale di Best (BCAR). Tuttavia, i rating risentono dell'impatto della società madre OneMain a causa del suo considerevole leverage finanziario.
Sebbene entrambe le aziende abbiano continuato a distribuire dividendi nel 2024 mentre gestivano i livelli di capitale target, AM Best segnala potenziali vincoli finanziari sui dividendi che potrebbero influenzare la futura capitalizzazione aggiustata per il rischio.
AM Best ha afirmado la Calificación de Solidez Financiera de B++ (Buena) y las Calificaciones de Crédito del Emisor a Largo Plazo de 'bbb' (Buena) para las subsidiarias de seguros de OneMain Holdings' (NYSE: OMF) - American Health and Life Insurance Company (AHLIC) y Triton Insurance Company.
Ambas subsidiarias demuestran una fuerza de balance muy sólida, un fuerte desempeño operativo, un perfil empresarial neutral y una adecuada gestión del riesgo empresarial. Mantienen el nivel más alto de capitalización ajustada al riesgo según el Ratio de Adecuación de Capital de Best (BCAR). Sin embargo, las calificaciones reflejan el arrastre de la empresa matriz OneMain debido a su considerable apalancamiento financiero.
Aunque ambas compañías continuaron pagando dividendos en 2024 mientras gestionaban los niveles de capital objetivo, AM Best señala posibles limitaciones financieras en los dividendos que podrían afectar la futura capitalización ajustada al riesgo.
AM Best는 재무 건전성 등급을 B++ (양호)로, 장기 발행자 신용 등급을 'bbb' (양호)로 확인했습니다. 이는 OneMain Holdings' (NYSE: OMF)의 보험 자회사인 American Health and Life Insurance Company (AHLIC)와 Triton Insurance Company에 해당합니다.
두 자회사는 매우 강력한 재무 구조, 강력한 운영 성과, 중립적인 사업 프로필, 적절한 기업 위험 관리 능력을 보여줍니다. Best의 자본 적정성 비율(BCAR)에 따르면, 위험 조정 자본화 수준이 가장 높습니다. 그러나 등급은 상당한 재무 레버리지로 인해 모회사 OneMain의 영향을 반영합니다.
두 회사는 2024년에도 목표 자본 수준을 관리하면서 배당금을 계속 지급했지만, AM Best는 향후 위험 조정 자본화에 영향을 미칠 수 있는 배당금에 대한 재정적 제약 가능성을 지적합니다.
AM Best a confirmé la Note de Solidité Financière de B++ (Bonne) et les Notes de Crédit de l'Émetteur à Long Terme de 'bbb' (Bonne) pour les filiales d'assurance de OneMain Holdings' (NYSE: OMF) - American Health and Life Insurance Company (AHLIC) et Triton Insurance Company.
Les deux filiales démontrent une très forte solidité bilantaire, une performance opérationnelle solide, un profil commercial neutre et une gestion des risques d'entreprise appropriée. Elles maintiennent le niveau le plus élevé de capitalisation ajustée au risque selon le Ratio d'Adéquation du Capital de Best (BCAR). Cependant, les notes reflètent l'impact de la société mère OneMain en raison de son levier financier considérable.
Bien que les deux entreprises aient continué à verser des dividendes en 2024 tout en gérant les niveaux de capital cibles, AM Best note des contraintes financières potentielles sur les dividendes qui pourraient affecter la future capitalisation ajustée au risque.
AM Best hat die Finanzstärke-Bewertung von B++ (Gut) und die Langfristigen Emittenten-Kreditratings von 'bbb' (Gut) für die Versicherungstöchter von OneMain Holdings' (NYSE: OMF) - American Health and Life Insurance Company (AHLIC) und Triton Insurance Company - bestätigt.
Beide Tochtergesellschaften zeigen eine sehr starke Bilanzkraft, eine starke operative Leistung, ein neutrales Geschäftsprofil und ein angemessenes Risikomanagement. Sie halten das stärkste Niveau der risikoadjustierten Kapitalisierung gemäß dem Kapitaladäquanzverhältnis von Best (BCAR). Die Bewertungen spiegeln jedoch den Einfluss der Muttergesellschaft OneMain aufgrund ihrer erheblichen finanziellen Hebelwirkung wider.
Während beide Unternehmen im Jahr 2024 weiterhin Dividenden zahlten und die Zielkapitalniveaus verwalteten, weist AM Best auf potenzielle finanzielle Einschränkungen bei den Dividenden hin, die die zukünftige risikoadjustierte Kapitalisierung beeinflussen könnten.
Positive
- Very strong balance sheet strength for both insurance subsidiaries
- Strongest level of risk-adjusted capitalization (BCAR)
- Strong operating performance relative to peers
- Consistent dividend payments maintained in 2024
Negative
- Considerable financial leverage at parent company level
- High concentration risk in credit insurance products
- Potential future stress on risk-adjusted capitalization due to dividend constraints
- Dependencies on OneMain as primary distribution source
Insights
The affirmation of B++ (Good) Financial Strength Ratings and "bbb" (Good) Long-Term Issuer Credit Ratings for OneMain's insurance subsidiaries represents a material stability indicator for these entities. B++ sits in AM Best's "Good" category - not top-tier "Excellent" (A range) but solidly in the secure zone, typically reflecting adequate protection for policyholders.
Two critical observations stand out: First, both subsidiaries maintain "the strongest level of risk-adjusted capitalization" per BCAR measurements, indicating robust solvency positions despite continued dividend distributions in 2024. Second, AM Best explicitly notes "drag from the parent company" due to OneMain's "considerable financial leverage" - signaling the ratings could potentially be higher if not for parent company constraints.
The concentration in credit insurance products creates vulnerability, with both subsidiaries heavily dependent on OneMain as their primary distribution channel. This interconnectedness means their fortunes remain closely tied to the parent's consumer finance operations. Most notable is AM Best's reference to "financial constraints in terms of dividends" that "may stress risk-adjusted capitalization" - suggesting caution around the sustainability of current dividend flows to the parent without potentially compromising future capital adequacy.
These ratings provide investors with third-party validation of financial stability while highlighting key vulnerabilities to monitor in OneMain's capital management approach across its insurance operations.
The unchanged ratings for OneMain's insurance subsidiaries offer important visibility into a sometimes overlooked aspect of the company's financial ecosystem. While OneMain is primarily known as a consumer lender, these insurance operations - offering credit insurance and term life products - represent a strategic diversification mechanism that complements the core lending business.
From a balance sheet perspective, the "very strong" assessment by AM Best indicates these subsidiaries maintain capital well above regulatory minimums. However, the explicit mention of "significant concentration in credit insurance products" reveals a structural vulnerability - their performance correlates strongly with the parent's lending activity rather than providing true business diversification.
The dividend dynamic deserves particular attention. Both subsidiaries "continued to pay dividends in 2024" while "managing target capital levels," but AM Best's warning about potential future stress suggests these dividend streams may face sustainability challenges. These upstream dividends likely support the parent company's overall capital flexibility, particularly important given the "considerable financial leverage" AM Best attributes to OneMain.
This rating affirmation indicates financial stability but reveals a delicate balancing act between maintaining strong insurance subsidiary capitalization and optimizing capital flows to the parent - a tension point worth monitoring as OneMain navigates its overall financial strategy.
The ratings of AHLIC reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings of AHLIC also reflect drag from the parent company, OneMain, a consumer finance company, which has considerable financial leverage within AM Best’s measurement. AHLIC and Triton are dependent on OneMain as a primary distribution source, and both insurance companies continue to have significant concentration in credit insurance products. AHLIC also provides term life insurance, which adds some diversity to its relatively narrow portfolio of products. AHLIC continues to maintain the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and generates consistent, favorable operating performance relative to peers and industry benchmarks.
The ratings of Triton reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate ERM. Triton’s ratings also reflect drag from OneMain. Triton maintains the strongest level of risk-adjusted capitalization, as measured by BCAR, and has reported strong operating results in recent years.
In addition, AM Best considers AHLIC and Triton’s financial constraints in terms of dividends in the ratings, as these constraints may stress risk-adjusted capitalization in the future. Both companies continued to pay dividends in 2024, while managing target capital levels.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in
Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250328497219/en/
Billiah Moturi
Senior Financial Analyst
+1 908 882 2191
billiah.moturi@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Robert Valenta, CPCU
Senior Financial Analyst
+1 908 882 2407
robert.valenta@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com
Source: AM Best
FAQ
What ratings did AM Best affirm for OneMain Holdings' (OMF) insurance subsidiaries in 2024?
AM Best affirmed a B++ (Good) Financial Strength Rating and 'bbb' (Good) Long-Term Issuer Credit Ratings for both AHLIC and Triton Insurance Company.
How strong is the balance sheet of OneMain's (OMF) insurance subsidiaries according to AM Best?
AM Best assesses both subsidiaries as having 'very strong' balance sheet strength, maintaining the strongest level of risk-adjusted capitalization measured by BCAR.
What are the main concerns highlighted by AM Best regarding OneMain Holdings (OMF)?
AM Best notes concerns about OneMain's considerable financial leverage and potential dividend constraints that could stress future risk-adjusted capitalization of its insurance subsidiaries.
What is the business profile assessment of OneMain's (OMF) insurance subsidiaries by AM Best?
AM Best assesses both subsidiaries as having a neutral business profile, with significant concentration in credit insurance products, though AHLIC also offers term life insurance.
