TEXT-S&P affirms Independence Life & Annuity FSR

Fri Jan 11, 2013 5:23pm EST

Overview
     -- ILA has good operating performance and implicit support from its 
parent, Sun Life.
     -- We are affirming our 'BBB+' financial strength rating on ILA and 
assigning our 'BBB+' counterparty credit rating.
     -- The stable outlook reflects our expectation that statutory operating 
earnings will continue to be enhanced by ILA's significantly redundant capital 
level.
Rating Action
On Jan. 11, 2013, Standard & Poor's Ratings Services affirmed its 'BBB+' 
financial strength rating on Independence Life & Annuity Co. (ILA) and 
assigned its 'BBB+' long-term counterparty credit rating. The outlook is 
stable.

Rationale
Our ratings on ILA reflect its stand-alone credit profile plus one notch of 
implicit support from the Sun Life group based on our application of our group 
methodology criteria.

ILA has been in run-off since the mid-1990s and generates good operating 
performance, in large part because it maintains a significant surplus 
position. As of Sept. 30, 2012, total statutory admitted assets were $130.4 
million, total liabilities were $66.7 million, and capital and surplus was 
$63.7 million. Year-to-date statutory net income through Sept. 30, 2012, was 
$1.9 million. The significantly redundant capital adequacy position is 
evidence of ongoing support from the Sun Life group, which, in our opinion, is 
committed to maintaining ILA's sound financial profile.

Outlook
The outlook is stable. We expect statutory operating earnings to continue to 
be enhanced by ILA's significantly redundant capital level. We could raise the 
ratings if ILA receives explicit support from a stronger affiliate. We could 
lower the ratings if the capital redundancy is significantly reduced or if ILA 
does not sustain positive earnings.

Related Criteria And Research
Principles Of Credit Ratings, Feb. 16, 2011

Ratings List
New Rating

Independence Life & Annuity Co.
 Counterparty Credit Rating
  Local Currency                        BBB+/Stable/--

Ratings Affirmed

Independence Life & Annuity Co.
 Financial Strength Rating
  Local Currency                        BBB+/Stable/--



Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.
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