AM Best affirms the Financial Strength Rating (FSR) of ‘A-’ (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of ‘a-’ (Excellent) of Guaranty Income Life Insurance Company and United Life Insurance Company, collectively referred to as Kuvare Retail Group. In addition, the ratings agency affirms the FSR of ‘A-’ (Excellent) and the Long-Term ICR of ‘a-’ (Excellent) of Bermuda-based Kuvare Life Re Ltd. (Kuvare Life Re). The outlook of these Credit Ratings is ‘stable’. AM Best also affirms the FSR of ‘B++’ (Good) and the Long-Term ICR of ‘bbb’ (Good) of Lincoln Benefit Life Company (LBL). The outlook of these ratings is revised to ‘stable’ from ‘negative’. The ratings of Kuvare Retail Group reflect its balance sheet strength, which AM Best assesses as ‘strong’, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The agency recognises Kuvare Retail Group’s solid operating improvements over the last several years, including premium growth in its key annuity products and stable operating profile with strong operating returns. AM Best also notes recent key initiatives that have improved capitalisation and leverage. The ratings of LBL reflect its balance sheet strength, which AM Best assesses as ‘adequate’, as well as its adequate operating performance, limited business profile and appropriate ERM. LBL’s ratings recognise the continued capital support required for its captive reinsurer, Lancaster Re Captive Insurance Company, and the resulting impact that it has had on LBL’s capital flexibility. AM Best says there has been a history of deterioration in the company’s capital trends due to underperformance in the runoff of its universal life with secondary guarantees business. Mitigating factors include actions the company is taking to manage the impacts of the legacy block of business on financial results going forward.
