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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 26, 2019 04:26 PM (EST)
AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Rating of “a-“ of Commercial Travelers Life Insurance Company, (Commercial Travelers) (Utica, NY), which is a subsidiary of National Guardian Life Insurance Company (National Guardian Life).
The under review with negative implications status follows the recently announced strategic partnership between National Guardian Life and Insurance Capital Group (ICG), a New York-based strategic investor in the mutual insurance industry, through ICG’s subsidiary, Federal Life Group, Inc. The two entities have jointly developed and launched a national dental and vision insurance business called BrightBenefits, which will be issuing new business through Commercial Travelers. In conjunction with the new strategic partnership, ICG is expected to make a significant equity investment in Commercial Travelers, subject to regulatory approval.
AM Best expects that this new strategic partnership, together with the recent sale of Commercial Travelers’ inforce student college, accident and special risk business, will have a material impact on Commercial Travelers’ business profile. As a result, the ratings of Commercial Travelers will remain under review until AM Best has met with company management and reviewed the group’s strategic and financial plans to assess the impact on the company’s ratings.
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, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.