AM Best has affirmed the Financial Strength Rating of ‘A+’ (Superior) and long-term issuer credit ratings of ‘aa-’ (Superior) for National Life Insurance Company and Life Insurance Company of the Southwest, collectively known as National Life Group. The ratings agency also affirmed the long-term issuer credit Rating of ‘a-’ (Excellent) for parent company NLV Financial Corporation. All ratings carry ‘stable’ outlooks. AM Best says the ratings reflect National Life Group's very strong balance sheet strength, strong operating performance, and appropriate enterprise risk management. The assessment considers the strongest level of risk-adjusted capitalisation as measured by Best's capital adequacy ratio. National Life Group has demonstrated consistent growth through its agent network, targeting niche markets including K-12 educators and indexed universal life products. The company's risk-based capital ratio remains well above regulatory requirements. For captive insurance managers, the analysis noted National Life Group's recent recapture of all assets from its captive reinsurer, Longhorn Reinsurance Company, resulting in a US$19 million asset increase in December 2024. AM Best will monitor the effects of this captive restructuring. The group launched a funding agreement-backed note programme in 2024, completing its first US$500 million issuance in January 2025. AM Best noted moderate volatility in net income levels driven by GAAP accounting changes for indexed products and equity market movements. The ratings reflect continued strategic initiatives supporting the group's market position in specialty insurance segments.
