OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a” from “a-” of Commonwealth Annuity and Life Insurance Company (Brighton, MA), its subsidiaries, First Allmerica Financial Life Insurance Company (Brighton, MA), Forethought Life Insurance Company (Indianapolis, IN), Accordia Life and Annuity Company (Des Moines, IA), and its affiliate, Global Atlantic Re Limited (Bermuda), which together operate as the Global Atlantic Group (Global Atlantic). A.M. Best also has upgraded the Long-Term ICRs to “bbb” from “bbb-” of Global Atlantic Financial Group Limited (Bermuda), the ultimate parent holding company, and its wholly-owned subsidiary, Global Atlantic Financial Life Limited (Bermuda). Additionally, A.M. Best has upgraded Long-Term Issue Credit Rating to “bbb” from “bbb-” on the $150 million 8.625% senior unsecured notes, due 2021, initially issued by Forethought Financial Group, Inc. (Delaware) (FFG) and assumed by Global Atlantic (Fin) Company (Delaware) (Finco). The outlook for these Credit Ratings (ratings) is being revised to stable from positive. Concurrently, A.M. Best has assigned a Long-Term ICR of “bbb” with a stable outlook to Finco. A.M. Best also has withdrawn the Long Term ICR of “bbb-” with a positive outlook of FFG following its recent merger into Finco.
The rating upgrades reflect Global Atlantic’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also factor in the company’s successful integration and rebranding of previously acquired business units, all the while maintaining consistently strong operating performance supporting growth in capital. The group’s risk-adjusted capitalization remains very strong and supports its insurance and investment risks despite prolonged growth trends and sizable reinsurance transactions. Furthermore, Global Atlantic continues to be a top player in its core fixed annuity, preneed and reinsurance markets; however, A.M. Best notes that the business profile is becoming increasingly interest sensitive due to the increasing proportion of reserves related to fixed annuities. Additionally, A.M. Best notes that the company’s financial leverage and interest coverage ratios are within guidelines and the company has access to additional capital and liquidity resources.
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