Frequently Asked Questions
Q: How long has American Savings Life Insurance Company been in business?
A: Since April 1954 in Phoenix, Arizona.
Q: What is American Savings Life's rating?
A: ASL does not pay to be rated by any of the rating agencies. Despite the fact that we have a 30+ year history of consistent profitability and have, dollar-for-dollar, one of the strongest balance sheets in the industry, because we are a small, niche life insurer, not doing business in a large number of states with a large array of products, we do not fit the model the rating agencies require to receive an “A” rating. Therefore, we choose to not “pay to play” and instead refer people to our company’s financial reports with our proven history of profitability and exceptional solvency as the best evidence of our financial strength and solvency.
Q: How can someone independently verify American Savings Life’s financial position?
A: There are two ways one can independently verify American Savings Life's financial strength:
Available upon request is an annual “Independent Comparative Report” prepared by Standard Analytical
Services, Inc. This report compares ASL’s key financial ratios with the 25
largest life insurance companies. A few key ratios included in the 2018 report are:
- Solvency (Assets for each $100 of liabilities):
- Average of 25 largest life insurance companies = $106.18
- American Savings Life = $134.10
- Surplus Funds (Amount of stockholder surplus per $100 of policy reserves):
- Average of 25 largest life insurance companies = $13.62
- American Savings Life = $49.07
- Profitability (Total income from operations for each $100 of total disbursements):
- Average of 25 largest life insurance companies = $107.77
- American Savings Life = $136.06
- Investment Yield (Net investment income to average invested assets):
- Average of 25 largest life insurance companies = 4.45%
- American Savings Life = 7.18%
- The Company’s Audited Financial Statements. A copy of ASL’s most recent audited statutory financial statement is available on the Stockholders Page of our Company's website.
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 65 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 MoneyTM. These secured loans are unique because we only loan on average 55% of the property’s value while earning an average of 8- 9% interest. The Company has been consistently profitable, even through the 2007-2010 real estate market correction and accompanying "Great Recession."
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 (800) 880-2112 and we will be happy to answer all of your questions.
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