American Savings Life Insurance Company aims to provide exceptional value to policyholders and clients through annuities, niche life insurance, and real estate financing. It makes use of its conservative investment activities to provide exceptionally secure products and services to its customers, as well as substantial returns to shareholders as it continues to grow its business.
Established in 1954 in Phoenix, Arizona, the American Savings Life Insurance Company is a publicly held insurance company that has more than a thousand shareholders.
The company has likewise successfully invested in real property financing, offering only niche loan packages for non-conforming borrowers and properties holding sufficient equity. Lending under these circumstances can go as high as half the value of the property.
From the time it started its operations, American Savings has held on to its conservative principles, giving its policy- and shareholders a feeling of security and confidence. The company's stability has withstood declining values in the industry by sticking to its policy of offering loans at only half the value of the property or collateral. It is through the company's cautious investment values that it has managed to maintain its financial strength through market fluctuations and economic recessions in the last half century or so.
The financial stability of American Savings is reflected in high marks it received from the Standard Analytical Service, Inc. The report makes a comparison of the operations of twenty-five of the leading insurance firms in the country with that of American Savings. Its findings revealed that American Savings performed better based on the collective averages of the other insurance companies. The company's financial solvency ratio is greater than that of the industry average. The solvency ratio reflects a company's ability to service all its responsibilities as they fall due.
The American Savings Life Insurance Company was established by Frihoff N. Allen, a life insurance salesman. Allen believed that large insurance companies suffer from two problems: having too many unnecessary expenses, and having "too many hands in the pie" so to speak. These problems have resulted to watered-down benefits for policyholders. He then endeavored to establish a life insurance company with a very lean business model that cuts through layers of overhead, passing the savings on to the customers through improved insurance products. The company has maintained this business model until today and this can be gleaned from its financial statements, particularly the operating costs and high profits.
American Savings' investment strategy has always been geared towards real estate lending. Allen started the company by using real estate mortgages that he had personally made and this expertise became the core of the company's investment activities. This profitable investment model has enabled American Savings to continually offer real estate loans with roughly 75 percent of the company's total assets invested in real estate loans.
American Savings lends funds in a conservative and traditional manner, originating its loans in-house via its lending company, American Life Financial. At any given time, an American Savings employee personally inspects what prospective borrowers are offering up in exchange for a loan. The loan amount is pegged at half the conservative current market value of the property. This policy has resulted to a very low rate of foreclosure and in cases of foreclosure; the company actually makes more profit as it is able to sell the property at a higher value than the loan that was released to the borrower.