AM Best

JULY 13, 2021 12:35 PM (EDT)

AM Best Affirms Credit Ratings of Guardian Life Insurance Company of America and Its Subsidiaries

 Anthony McSwieney
Senior Financial Analyst
+1 908 439 2200, ext. 5715

Michael Adams
Associate Director
+1 908 439 2200, ext. 5133

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644


OLDWICK - JULY 13, 2021 12:35 PM (EDT)
AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” (Superior) of Guardian Life Insurance Company of America (Guardian Life) (New York, NY) and its core subsidiaries, Guardian Insurance & Annuity Company, Inc. (Wilmington, DE) and Berkshire Life Insurance Company of America (Pittsfield, MA) (together referred to as Guardian). Concurrently, AM Best has affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “aa-” (Superior) of Guardian Life’s surplus notes. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the Long-Term IRs)

The ratings reflect Guardian’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management (ERM).

The group has maintained a solid risk-based capital profile and a Best’s Capital Adequacy Ratio (BCAR) at the strongest level. Guardian’s capital profile is enhanced further through access to capital markets through its moderate use of surplus notes to support its business. Guardian has leverage ratios that AM Best considers appropriate for the group’s credit profile. In addition, Guardian has less exposure to higher risk and less liquid assets than its peers.

Guardian benefits from its strong market position in all of its core business segments, which supports the group’s strong operating performance, as measured by premium metrics, investment returns and underwriting performance. Guardian’s balance sheet and operating performance consistency are based on a historically lower risk profile embedded in the company’s ERM program. The company is actively managing its exposure to credit-related risk as part of its ERM process and has demonstrated the ability to withstand prolonged credit exposure should it worsen.

The following Long-Term IRs have been affirmed with stable outlooks:

Guardian Life Insurance Company of America—

— “aa-” (Superior) on $400 million 7.375% surplus notes, due 2039

— “aa-” (Superior) on $450 million 4.875% surplus notes, due 2064

— “aa-” (Superior) on $300 million 3.70% surplus notes, due 2070

— “aa-” (Superior) on $350 million 4.85% surplus notes, due 2077

Guardian Life Global Funding – “aa+” (Superior) program rating

—“aa+” (Superior) on all outstanding notes issued under the program

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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