OneAmerica companies remain strong, viable during economic slowdown
Contact:
Beth King, APR, (317) 285-4168
beth.king@oneamerica.com
For Immediate Release:
Indianapolis (Aug. 20, 2008) – Prudent management, fiduciary responsibility and a strong commitment to customers have prevented the economic slowdown that has affected businesses across the country from hitting the OneAmerica companies, Chairman, President and CEO Dayton Molendorp stated.
Molendorp reported that the OneAmerica investment portfolios have no defaulted or delinquent investments, with portfolios well diversified across hundreds of separate issuers. Additionally, 97.8 percent of bond holdings are considered investment grade. Non-investment grade bond holdings also are far below the industry average, and the commercial mortgage loan portfolio has an average loan-to-original-appraised-value of 52 percent.
“Our conservative approach and commitment to policyholders has helped us avoid investment products that have largely been responsible for investment losses,” Molendorp said. “Moving forward into the second half of 2008, we are well positioned to maintain that philosophy as we look for additional ways to provide customer value.”
In 2008, the OneAmerica companies continue to have none of the following:
- Subprime loans
- Alt-A investments
- Collateralized debt obligations (CDOs)
- Collateralized loan obligations (CLOs)
- Structured investment vehicles (SIVs)
- Auction rate loans
In June, OneAmerica’s financial strength was validated when credit rating agency A.M. Best gave an A (Excellent) rating for the OneAmerica companies, American United Life Insurance Company® and its affiliates Pioneer Mutual Life Insurance Company and The State Life Insurance Company. This rating is the third highest of A.M. Best’s 15 ratings. Additionally, A.M. Best rated these OneAmerica companies in the upper tier of all A-rated companies through its issuer credit rating of A+. The agency also affirmed the debt ratings of OneAmerica and AUL. The outlook for all ratings is “stable.”
With other credit rating agencies, these OneAmerica companies maintain the AA- (Very Strong) rating from Standard and Poor’s and the A2 (Good) rating from Moody’s.
“Our commitment always has been to deliver on our promises when customers need us most,” Molendorp continued. “Regardless of what the market says or what kind of an economic outlook our country faces, our vision, values and goals will remain the same and customers can always count on us to assist them at every stage in life.”
About OneAmerica
OneAmerica Financial Partners, Inc., is headquartered in Indianapolis, IN. The companies of OneAmerica® can trace their solid foundations back more than 125 years in the insurance and financial services marketplace.
OneAmerica’s nationwide network of companies offers a variety of products to serve the financial needs of their policyholders and other clients. These products include retirement plans, products and services; individual life insurance, annuities, long-term care solutions and employee benefits. The goal of OneAmerica is to blend the strengths of each company to achieve greater collective results.
The products of the OneAmerica companies are distributed through a network of employees, agents, brokers, and other distribution sources that are committed to maximizing value to our policyholders by helping them plan to meet their financial goals.
We deliver on our promises when customers need us most.
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