Tag: Funeral Insurance

Regulations

Around the Globe: Funeral News from Australia and Spain

Australia – After a series of high profile abuses of the financial services industry in Australia in the last couple of years, the Australian government commissioned High Court Justice and royal commissioner Kenneth Hayne to investigate the complete financial services industry and come up with some ideas on how to regulate such. That report has now been issued and Justice Hayne has issued what this news report calls a “damning final report” on the industries that touch almost every Australian.  […]

Finance

Assurant posts higher Preneed Sales and Profits

Assurant Preneed, a component of Assurant, posted higher revenue and higher profits in their 3Q 2018 results that were made public after the market on Tuesday.  You can read the company’s press release on its earnings report here. Assurant, a member of the Death Care Index (DCI), operates a world-wide conglomerate composed of three segments — Global Housing, Global Lifestyle, and Global Preneed.  The entire company has posted solid financials in 2018 reporting a $216.5 million profit for the first […]

Preneed

Funeral Directors Life downgraded to Negative Outlook

A press release from A.M. Best that you can read here has revised the outlook to negative from stable for Funeral Directors Life Insurance Company of Abilene, Texas. The rating change also states that the negative outlook reflects the company’s “ERM” or enterprise risk management. The release also maintains that the company’s metrics “reflect the company’s generally steady operating earnings, driven by somewhat modestly growing preneed premiums.  A.M. Best does, however, view the company’s business profile as limited and concentrated […]

Preneed

Life Insurer’s Council Reports on Preneed Sales

In two different articles that you can find here and here, the Life Insurance Council (LIC) reported on the results of their study of 2017 Preneed activity.  The study found mixed results in that annual premiums for preneed life insurance was $1.3 billion – down 3% from 2016.  The study also found that multi-pay policies were down 11% from 2016. On the other side of the ledger, however, the LIC found that preneed annuity sales increased 5% from 2016 levels. […]

Preneed

Great Western earns Credit Rating Upgrade

Earlier this year we told you of the acquisition of pre-need provider Great Western Insurance Company by the American Enterprise Group of Des Moines, Iowa.  As of April 25, 2018, A.M. Best has completed their ratings on Great Western Insurance Company post acquisition. A.M. Best has upgraded, in a report you can read here, the Financial Strength Rating of Great Western to A- (Excellent) from B++ (Good) and the Long Term Issuer Credit Rating to a- from bbb+. Other notable […]

Preneed

Pre-Need: Defensive Strategy or Offensive Weapon?

Recently I was reading a business plan of a public company funeral home consolidator and when talking about how they look at the pre-need market, they mentioned that they look at Pre-Need as a “defensive posture” for holding on to call volume.  That was interesting to me because I have always looked at Pre-Need as more of a “go get people outside of your market group” to build business.  I’ve now decided that you should not look at Pre-Need as […]

Finance

Assurant Financial Strength Affirmed

While not specific to the death care portion of their industry, A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) for the U.S. property/casualty subsidiaries of Assurant, Inc.  The credit rating company has also affirmed the Long-Term Issuer Credit Ratings of Assurant at bbb+.  Best continues that the outlook of these Credit Ratings is Stable.  You can see the report from Business Wire here. According to the Business Wire article these ratings reflect Assurant’s balance sheet strength, […]

Preneed

American Enterprise Group grows with Great Western Acquisition

An article from the Des Moines Register that you can read here gives some implications on the American Enterprise Group (AEG), a Des Moines based insurer, and its acquisition of Great Western Insurance Company of Utah.  As you recall we made you aware of this acquisition last month on Funeral Director Daily and now that the transaction has closed we will give some more perspective with some information gleaned from the article. American Enterprise Group was founded in 1929 and […]

Preneed

Pizza and Pre-Planning

More than ever, in our transitionary society, funeral homes are depending on pre-arrangements, at a younger age,  to get families to choose their funeral home over a competitor.  People just don’t seem as loyal as years gone by and the thought is that the idea of getting some future business on the books can’t do anything but help a funeral home in the future. Several years ago our funeral home started offering monthly seminars on pre-planning.  We still do and […]

Preneed

Pre-Arrangement Operations in the Cremation World

Back in the 1990s as our State of Minnesota began allowing insurance policies to be a repository for pre-need funeral arrangement funding, many funeral homes, mine included, started insurance agencies in order to profit from the decision.  Since, Minnesota is a 100% trusting state, prior to that decision if a family gave you $5000 to pre-arrange a funeral, all $5000, 100% of what you were given, had to be put in a certificate of deposit.  Since it was all put […]