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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 17, 2019 10:58 AM (EDT)
AM Best has downgraded the Financial Strength Rating to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Rating to “a-“ from “a+” of Foresters Life Insurance and Annuity Company (FLIAC) (New York, NY). Concurrently, AM Best has placed the Credit Ratings (rating) under review with negative implications.
The ratings reflect FLIAC’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The rating downgrades reflect the fact that FLIAC no longer plays an important role in the insurance operations of The Independent Order of Foresters. These rating actions follow the announcement by Foresters Financial of its sale of FLIAC to Nassau Life Insurance Company (Nassau Life) (headquartered in Hartford, CT). Foresters Financial will hold the proceeds from the sale for general corporate purposes, including to fund organic growth in Foresters Financial’s insurance operations in Canada and the United States. The transaction is in line with Foresters Financial’s strategy of focusing on its core life insurance and retirement needs of its members, while also fostering community outreach.
This transaction is expected to close during the first quarter of 2020, pending regulatory approvals. These ratings will remain under review pending the closing of the sale and completion of AM Best’s analysis of the transaction and FLIAC’s role within the Nassau Life enterprise.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency and information provider with an exclusive focus on the insurance industry.