JULY 17, 2020 10:35 AM (EDT)
AM Best Withdraws Credit Ratings of Foresters Life Insurance and Annuity Company Due to Merger
|Michael Adams |
+1 908 439 2200, ext. 5133
+1 908 439 2200, ext. 5892
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - JULY 17, 2020 10:35 AM (EDT)
AM Best has removed from under review with negative implications and downgraded the Financial Strength Rating to B+ (Good) from A- (Excellent) and the Long-Term Issuer Credit Rating to “bbb-” from “a-” of Foresters Life Insurance and Annuity Company (FLIAC) (New York, NY). The outlook assigned to these Credit Ratings (ratings) is negative. Concurrently, AM Best has withdrawn the ratings following its merger into Nassau Life Insurance Company.
The ratings reflect FLIAC’s balance sheet strength, which AM Best categorizes as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
On July 1, 2020, Nassau Financial Group, L.P. (Nassau) announced that it had completed the acquisition of FLIAC from The Independent Order of Foresters. Although FLIAC is fundamentally sound in terms of risk-adjusted capitalization and operating earnings, the rating downgrades reflect drag from Nassau’s insurance operating entities. AM Best expects the earnings impact of the acquisition for Nassau to be modest in the near term, although accretive in the longer term assuming satisfactory execution of strategic plans. Subsequent to the acquisition, the entity was merged into Nassau Life Insurance Company on July 8, 2020, and as a result, the ratings have been withdrawn.
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.