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FOR IMMEDIATE RELEASE
OLDWICK - MAY 31, 2024 10:02 AM (EDT)
AM Best has downgraded the Financial Strength Rating to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Rating to “bbb+” (Good) from “a-” (Excellent) of Gleaner Life Insurance Society (Gleaner) (Adrian, MI). Concurrently, AM Best has placed these Credit Ratings (ratings) under review with developing implications.
The ratings reflect Gleaner’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and marginal enterprise risk management (ERM).
On April 8, 2024, Anthony Clark, president and CEO, was released from his position; following a special board election in which three new board members were elected. The special election was held due to the cancellation of scheduled board elections in the fall of 2023. Gleaner has appointed Kevin Marti, who served as president and CEO prior to August of 2022, to act as interim president and CEO until the company can find a permanent replacement. The high turnover in several key management positions since 2022 contributed to delays in the first quarter of 2024 financial statements and the audited financial statements. These events exposed gaps in the corporate governance of Gleaner and contributed to the ERM program being assessed as marginal. A number of employees in key management positions have returned to Gleaner since the election on April 8. AM Best expects a primary focus of the new board and returning management team will be to improve the ERM program of Gleaner.
The ratings are expected to remain under review with developing implications until AM Best receives and assesses first quarter of 2024 unaudited financial statements, year-end 2023 audited financial statements and forthcoming year-end restatement and re-filed 2023 statutory financial statements.
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.