Best’s News & Research Service - February 21, 2020 11:55 AM (EST)
AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of Guaranty Income Life Insurance Co
- February 21, 2020 11:55 AM (EST)
Oldwick //BestWire// - AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” of Guaranty Income Life Insurance Company (GILIC) (Cedar Rapids, IA). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings of GILIC reflect its balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The balance sheet assessment is supported by the company’s strong risk-adjusted capitalization, aided by holding company support during the recent high-growth period and new product launches with a robust emphasis on asset and liability matching to reduce headwinds of spread compression and reduce the risk to the liability profile.
Offsetting rating factors include a lower quality of capital with use of surplus notes and execution risk from GILIC’s recent acquisition of the larger Lincoln Benefit Life Company.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.