AM Best Assigns Credit Ratings to Clear Spring Life Insurance Company
- February 10, 2022 03:09 PM (EST)
Oldwick //BestWire// - AM Best has assigned a Financial Strength Rating of A-(Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Clear Spring Life Insurance Company (Clear Spring Life) (Austin, TX). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Clear Spring Life’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
Clear Spring Life’s balance sheet assessment of strong is supported by the company being funded with cash, while maintaining a risk-adjusted capital position that adequately supports several years of expected future growth. While its business profile is limited given the start-up nature of the business and limited product offering through a single direct-to-consumer distribution strategy, AM Best expects the company to maintain an adequate operating performance in the near term. The ratings are supported further by its ultimate parent, Group 1001 Insurance Holdings, LLC, via receiving rating enhancement from its significantly larger lead rating unit, Group 1001 Life & Annuity Group. AM Best expects significant operational synergies from management experience, asset and risk management and actuarial support, as well as committed financial support should the need arise.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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.