A.M. Best Removes From Under Review With Developing Implications, Upgrades Issuer Credit Rating of Liberty Life Assurance Company of Boston

OLDWICK, N.J.--()--A.M. Best has removed from under review with developing implications, upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a+” from “a”, and affirmed the Financial Strength Rating of A (Excellent) of Liberty Life Assurance Company of Boston (LLAC) (Dover, NH). The outlook assigned to these Credit Ratings (ratings) is stable.

The upgrade of the Long-Term ICR follows the completion of LLAC’s acquisition by The Lincoln National Life Insurance Company, the lead insurance company of Lincoln National Corporation (Lincoln) [NYSE:LNC], effective May 1, 2018. LLAC will serve as Lincoln’s primary marketing arm for its large case group life and accident and health business, expanding Lincoln's market position and capabilities within this segment. The ratings also reflect LLAC’s balance sheet strength, which A.M. Best categorizes as adequate, as well as its adequate operating performance, limited business profile and appropriate risk management. A.M. Best expects risk-adjusted capitalization will remain adequate and be supported by Lincoln going forward. However, due to reinsurance transactions initiated in conjunction with the acquisition, LLAC's business profile is materially diminished as almost all in-force and new business is being ceded to affiliated and non-affiliated reinsurers.

A.M. Best notes that the ratings of Lincoln and its insurance subsidiaries, as well as the Long-Term Issue Credit Ratings on all outstanding notes remain unchanged.

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.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Keith Behrmann, +1 908-439-2200, ext. 5733
Senior Financial Analyst
keith.behrmann@ambest.com
or
Christopher Sharkey, +1 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Rosemarie Mirabella, +1 908-439-2200, ext. 5892
Director
rosemarie.mirabella@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Keith Behrmann, +1 908-439-2200, ext. 5733
Senior Financial Analyst
keith.behrmann@ambest.com
or
Christopher Sharkey, +1 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Rosemarie Mirabella, +1 908-439-2200, ext. 5892
Director
rosemarie.mirabella@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com