AM Best has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and the long-term issuer credit ratings to “a” (Excellent) from “a-” (Excellent) of Arizona-headquartered Oceanview Life and Annuity Company and its Bermudian-based reinsurer affiliate, Oceanview Reinsurance Ltd.

These companies are collectively referred to by AM Best as Oceanview.

The agency said the outlook of these credit ratings has been revised to stable from positive.

AM Best said the ratings reflect Oceanview’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

It added that the rating changes consider Oceanview’s continued growth in capital needed to support a growing book of business driven by recently established profitability and continued capital support from the parent company.

AM Best said it expects positive earnings growth to contribute to Oceanview’s capital growth along with a continued but declining need in the level of capital support required by the parent.