MARCH 31, 2021 11:20 AM (EDT)
AM Best Revises Issuer Credit Rating Outlook to Positive for Global Atlantic Financial Group Limited and Its Subsidiaries
Senior Financial Analyst
+1 908 439 2200, ext. 5715
+1 908 439 2200, ext. 5548
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 31, 2021 11:20 AM (EDT)
AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the Financial Strength Ratings (FSR) of A (Excellent) and the Long-Term ICRs of “a” of the subsidiaries of Global Atlantic Financial Group Limited (Bermuda). The outlook of the FSRs is stable. These subsidiaries are referred to collectively as Global Atlantic Group (Global Atlantic). AM Best also has revised the outlook to positive from stable for the Long-Term ICR and affirmed the Long-Term ICRs of “bbb” of Global Atlantic Financial Group Limited (Bermuda), the ultimate parent holding company, and its wholly owned subsidiary, Global Atlantic (Fin) Company (Bermuda) (Finco). Additionally, AM Best has revised the outlook to positive from stable and affirmed the Long-Term Issue Credit Rating of “bbb” on the $150 million 8.625% senior unsecured notes, due 2021, initially issued by Forethought Financial Group, Inc. and assumed by Finco. (See below for a detailed listing of the subsidiaries)
The Credit Ratings (ratings) reflect Global Atlantic’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The positive Long-Term ICR outlook represents the improvement in Global Atlantic’s business profile through strategic growth in flow reinsurance, pension risk transfer and other product blocks. With the recent announcement of the company’s affiliation with KKR in February, AM Best anticipates that this rating factor will likely be enhanced further through more reinsurance opportunities.
Global Atlantic’s balance sheet continues to be supported by its strong risk-adjusted capitalization complemented by a strong asset-liability matching program. Investment risk, while diversified and well managed to date, does provide a potential for greater volatility. Global Atlantic maintains a favorable market position in its core annuity, life insurance and reinsurance segments – a key driver for premium and earnings growth for the company.
Global Atlantic’s profitability has been improving through several years of risk reduction and strategic business initiatives currently being realized and is expected to organically enhance the company’s balance sheet going forward.
The FSRs of A (Excellent) have been affirmed with stable outlooks and the Long-Term ICRs of “a” have been affirmed with positive outlooks for the following subsidiaries of Global Atlantic Financial Group Limited:
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 Guide to 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 analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.