Frequently Asked Questions
Q: How Long Has ASL Been In Business?
A: Over 62 years. ASL was founded on April 6, 1954 in Phoenix, AZ and has been a licensed life insurer since April 22, 1954.
Q: What is ASL’s Rating?
A: ASL does not request to be rated by any of the rating agencies. As ASL is not doing business in multiple markets or does not have a large array of products, we believe the rating agencies add little value and do not justify the excessive fees charged by them. We choose to not "pay to play" and instead refer people to our Company's proven history of profitability and exceptional solvency as hard evidence of our financial strength.
Q: How Can Someone Independently Verify ASL’s Solvency?
A: There are two ways one can independently verify ASL’s financial strength and solvency:
Available upon request is a “2015 Independent Comparative Report” prepared by Standard Analytical Services, Inc. as of December 31, 2014. This report compares ASL’s key financial ratios with the 25 largest life insurance companies. A couple key ratios included in this report are:
- Solvency Ratio (Assets for each $100 of liabilities)
- Average of 25 largest life insurance co's = $105.65
- American Savings Life = $141.37
- Surplus Funds (Amount of stockholder surplus per $100 of policy reserves)
- Average of 25 largest life insurance co's = $13.61
- American Savings Life = $56.96
- The Company’s audited financial statements. A copy of ASL’s 12-31-2014 audited statutory financial statements is available upon request.
Q: How Can ASL Afford to Pay Above-Market Interest on its Annuities?
A: ASL has a very different business model than the typical life insurance company. We operate with a LOW overhead. We do not have high executive salaries and bonuses and extensive layers of management. We also have LOW marketing and sales expenses. We have directly appointed agents and we pay modest commissions. We also have a proven history of profitability that is significantly better than industry averages.
Q: How Does ASL Invest Its Assets?
A: For over 62 years ASL has maintained the same investment model of investing the majority of its assets in a very conservative yet profitable niche real estate loan product we call Not So Hard Money.TM These secured loans are unique because we only loan on average 50% of the property’s value while earning an average of 11% interest. Even in the 2007-2011 real estate market correction and economic meltdown, ASL’s loan portfolio has performed well and the Company has continued to be profitable.
We invite you to learn more about American Savings Life online at www.AmericanSavingsLife.com or call us at our home office (480-835-5000 or toll-free 1-800-880-2112). We will be happy to answer all of your questions.
Form No. ASLFAQ 041914
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