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FOR IMMEDIATE RELEASE
OLDWICK - JULY 27, 2023 11:20 AM (EDT)
AM Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a+” (Excellent) from “a” (Excellent) and affirmed the Financial Strength Rating (FSR) of A (Excellent) of Commonwealth Annuity and Life Insurance Company (Brighton, MA), First Allmerica Financial Life Insurance Company (Brighton, MA), Forethought Life Insurance Company (Indianapolis, IN), Accordia Life and Annuity Company (Des Moines, IA), and its affiliates, Global Atlantic Re Limited (Bermuda) and Global Atlantic Assurance Limited (Bermuda). Together, these subsidiaries are referred to collectively as Global Atlantic Group (Global Atlantic). The outlook of the Long-Term ICRs has been revised to stable from positive, while the outlook of the FSR is stable. AM Best also has upgraded the Long-Term ICR to “bbb+” (Good) from “bbb” (Good) of Global Atlantic Financial Group Limited (Bermuda). The outlook of the Long-Term ICR has been revised to stable from positive.
The Credit Ratings (ratings) reflect Global Atlantic’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The upgrade of the Long-Term ICRs represents Global Atlantic’s continued improvement in its balance sheet strength, the ability to grow reinsurance premium supported by matching funding capabilities, and strong levels of risk-based capital. AM Best considers the group’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), to be very strong. The higher risk asset allocation held by the group, compared with the broader industry, is supported by the provided capital on a risk-adjusted basis.
Global Atlantic’s profitability continues to be positive and supportive of its ratings as previous risk reduction strategies have enabled the group to execute on its current growth objectives. The group’s ERM is in line with the scope of operations and supports an appropriate asset liability matching program at the current time.
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.