We are not interested in ratings by A.M. Best. What we are interested in is Household Life, who owns it, and how many holding companies one must go through. Household Life is one of the last remaining reflections of Household International, owned by HSBC since 1993.

A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” of Household Life Insurance Company (Household Life) (Detroit, MI) and its wholly owned subsidiary, First Central National Life Insurance Company of New York (First Central) (New York, NY). Household Life and First Central are the principal insurance operating entities of HSBC Finance Corporation, which is an indirect wholly owned subsidiary of HSBC Holdings, plc.

In theory, according to HSBC, the bank will shut down HSBC Finance with the exception of the HSBC Finance credit card business, which is said to be highly profitable.

This decision expedites the run-off status of the company that was driven by HSBC’s 2009 announcement that it would cease issuing credit insurance in the United States, which included the subsequent closure of HSBC Insurance Company’s primary distribution source.

Translation: HSBC shut down HSBC Finance and, combined with new financial regulations, has stopped insurance packing and no longer has an outlet for mysterious insurance schemes many customers claim they never subscribed to in the first place – although insurance appeared on their statements.