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OLDWICK, N.J.–(BUSINESS WIRE)–
AM Best raised its Financial Strength Rating (FSR) from B++ (good) to A- (excellent) and its long-term issuer credit rating (long-term ICR) from ‘bbb+’ (good) to ‘a-‘ (excellent). Guaranty Income Life Insurance Company (GILIC) (headquartered in Baton Rouge, Louisiana). In addition, AM Best confirmed his FSR of A- (Excellent) and long-term ICR of “a-” (Excellent) for United Life Insurance Company (ULIC) (Cedar Rapids, IA). The outlook for these credit ratings is stable. At the same time, AM Best confirmed that Lincoln Benefit Life Company (LBL), headquartered in Rosemont, IL, has an FSR of A- (excellent) and a long-term ICR of “a-” (excellent). The outlook for these ratings is negative.
GILIC’s rating reflects AM Best’s assessment of strong balance sheet strength, adequate operating performance, a neutral business profile and adequate Enterprise Risk Management (ERM).
ULIC’s rating reflects the strength of its balance sheet, which AM Best assesses as very strong, adequate operating performance, a neutral business profile and adequate ERM.
The LBL rating reflects AM Best’s assessment of strong balance sheet strength, adequate operating performance, neutral business profile and adequate ERM.
GILIC’s upgrade reflects increased synergies with sister company ULIC, including common management and business strategies for the Kuvare US Holdings, Inc. (Kuvare) retail insurance business.
This includes recent initiatives currently underway to reorganize the institutional market business to exclude it from under the retail business. Also worth noting is the significant improvement in the company’s operating strength over the past few years, including premium growth in key annuity products, strong sales expansion and a stable operating profile with good operating margins.
Offsetting rating factors include the impact of new business strains on operating results and capital. In addition, GILIC’s reserve book is heavily weighted to interest rate sensitive reserves where the product profile is concentrated. In AM Best’s view, GILIC’s risk-adjusted capital has qualitatively decreased due to a higher proportion of surplus notes and increased leverage at Kuvare. Kuvare continues to explore ways to increase financial flexibility for implicit and explicit support of retail and institutional business.
The negative outlook for LBL when viewed in conjunction with its captive reinsurer, Lancaster Recaptive Insurance Company, reflects the company’s continued need for capital support. This was due to deterioration in the company’s capital dynamics as a result of run-off universal life insurance and secondary guaranteed business underperforming initial plans. Mitigating factors include the company’s strategic vision. This includes plans to support debt support and stop dividends from the organization to improve its capital position.
This press release relates to credit ratings posted on AM Best’s website. For all rating information related to the release and related disclosures, including details of the office responsible for issuing the individual ratings referenced in this release, please visit AM Best’s. Recent Ratings Activity web page. See below for additional information regarding the use and limitations of Credit Rating Opinions. Best credit rating guideInformation on proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments, and AM Best press release, see Guide to Correct Use of Best Ratings and Ratings.
AM Best is a global credit rating agency, news publisher and data analytics provider dedicated to the insurance industry. Headquartered in the United States, with offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City, we operate in over 100 countries. For more information, see: www.ambest.com.
Copyright © 2022 AM Best Rating Services, Inc. and/or its affiliates. all rights reserved.
View source version at businesswire.com: https://www.businesswire.com/news/home/20221021005456/en/
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Source: AM Best
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