Best’s News & Research Service - March 04, 2022 09:15 AM (EST)
AM Best Removes From Under Review, Affirms Credit Ratings for Members of Everlake Life Group Under New Parent
- March 04, 2022 09:15 AM (EST)
Oldwick //BestWire// - AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of Everlake Life Insurance Company and Everlake Assurance Company, collectively known as Everlake Life Group (Everlake Life). Both companies are domiciled in Northbrook, IL. The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Everlake Life’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
AM Best views Everlake Life’s overall balance sheet strength as very strong, anchored by its strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). In addition, under Everlake Life’s ownership by a permanent capital vehicle managed by Blackstone, the company has begun a material repositioning of the investment portfolio, which has improved the capital position of the companies, to be completed over the next 12-18 months. Everlake Life’s strategy is to continue to build scale and diversity through the opportunistic acquisition of life and annuity blocks with the backing and support of entities managed by Blackstone, which acquired the companies in November 2021. AM Best believes that Everlake Life will benefit from Blackstone’s investment and market expertise, as well as the knowledgeable management team that is in place. Strong operating performance will continue to be driven by a steady stream of net investment income from profitable inforce business and the potential for additions of profitable new blocks of business in the near to medium term. The group’s business strategy is underpinned by its robust risk framework and governance structure and comprehensive risk modeling capabilities.
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.