Best’s News & Research Service - November 20, 2018 02:00 PM (EST)
A.M. Best Upgrades Credit Ratings of Fidelity & Guaranty Life Holdings and Key Subs.; Assigns Ratings to F&G Reinsurance Ltd
- November 20, 2018 02:00 PM (EST)
Oldwick //BestWire// - A.M. Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a-” from “bbb+” of the key life/health subsidiaries of Fidelity & Guaranty Life Holdings, Inc. (FGLH) (Delaware). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. (See below for a detailed listing of these companies.) Concurrently, A.M. Best has assigned an FSR of A- (Excellent) and a Long-Term ICR of “a-” to F&G Reinsurance Ltd (Bermuda). The outlook assigned to these ratings is stable. These subsidiaries collectively are referred to as Fidelity & Guaranty Life Group.
In addition, A.M. Best has upgraded the Long-Term ICR to “bbb-” from “bb+” and the Long-Term Issue Credit Rating (Long-Term IR) to “bbb-” from “bb+” of FGLH. The outlook of these ratings has been revised to stable from positive. (See below for details of the Long-Term IR.)
The ratings reflect Fidelity & Guaranty Life Group’s balance sheet strength, which A.M. Best categorizes as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The group’s ratings primarily reflect its solid and improved risk-adjusted capitalization, strong financial flexibility and improved investment management capabilities. FGLH’s operating companies have reported generally positive earnings and hold a strong competitive position in the fixed-indexed annuity (FIA) market.
Partially offsetting these rating factors is the above-average risk exposure in the company’s investment portfolio, its significant reliance on FIA sales and the high level of competition in the FIA market. A.M. Best notes that despite exposure to some heightened investment risk, FGLH’s investment management capabilities are viewed as strong as the group benefits from its new relationship with Blackstone Insurance Solutions Group, which provides FGLH with access to Blackstone resources.
The FSR has been upgraded to A- (Excellent) from B++ (Good) and the Long-Term ICRs to “a-” from “bbb+”, with the outlooks revised to stable from positive, for the following key life/health subsidiaries of Fidelity & Guaranty Life Holdings, Inc.:
- Fidelity & Guaranty Life Insurance Company
- Fidelity & Guaranty Life Insurance Company of New York
The following Long-Term IR of FGLH has been upgraded with its outlook revised to stable from positive:
— to “bbb-” from “bb+” on $550 million 5.5% senior unsecured notes, due 2025
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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