Best’s News & Research Service - February 21, 2020 11:54 AM (EST)
AM Best Removes From Under Review with Negative Implications and Affirms the Credit Ratings of Lincoln Benefit Life Company
- February 21, 2020 11:54 AM (EST)
Oldwick //BestWire// - AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long Term Issuer Credit Rating of “a-” of Lincoln Benefit Life Company (Lincoln Benefit) (Lincoln, NE). The outlook assigned to these Credit Ratings (ratings) is negative.
The ratings reflect Lincoln Benefit’s 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 negative outlooks reflect the continued decline in capital and surplus at Lincoln Benefit, as well as when viewed together with its captive reinsurer, Lancaster Re Captive Insurance Company, coupled with a lower capital and surplus to liability ratio that is below its similarly rated peers. The deterioration in the company’s capital position is due to underperformance in its runoff operations beyond initial projections. Mitigating factors include a new team with a strategic vision for the company, with a plan that includes supporting the liabilities and a suspension of dividends from the organization to improve its capital position.
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.