Summary: MTL Insurance Co. Aug 11

Standard & Poors, August 2011

Abstract
The insurer financial strength rating on MTL Insurance Co. (MTL) is based on the company's very strong capitalization, strong liquidity, and competitive position. The company's historic inability to organically generate capital because of strong sales growth, as well as its narrow product and earnings profile, somewhat offset these positive factors. The asset and liability mismatch on MTL's whole life product is another offsetting factor, but we recognize the product's substantial flexibility through the dividend mechanism. MTL's large commercial mortgage loan portfolio amounts to about 19% of the investment portfolio, but the potential losses should be manageable according to our stress test. The rating also reflects MTL's avoidance of investments related to subprime, Alternative-A, and other distressed institutions. MTL's competitive position...

Companies mentioned in this report are:
- MTL Insurance Co.

Action: Review

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This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

- MTL Insurance Co.

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