OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Lincoln Benefit Life Company (Lincoln Benefit) (Lincoln, NE). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Lincoln Benefit’s balance sheet strength, which AM Best categorizes as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
On Oct. 3, 2017, the ratings of Lincoln Benefit were placed under review with developing implications following the announcement that Lincoln Benefit’s parent, RL LP (formerly known as Resolution Life, L.P.), had entered into a definitive agreement to sell Lincoln Benefit to a Global Bankers Insurance Group (GBIG) affiliate. The developing implications status reflected the need for AM Best to evaluate GBIG’s integration plans for Lincoln Benefit, as well as ensure that risk-adjusted capitalization would be maintained at levels in line with its current ratings, and the overall potential impact on the company’s fundamentals. The latest rating actions reflect the termination of the planned acquisition and AM Best’s revised assessment of Lincoln Benefit’s ratings.
Lincoln Benefit has forecasted continued positive earnings trends and steady capital growth that are in-line with AM Best’s expectations in the near term. AM Best will continue to monitor the progress of Lincoln Benefit’s owners in considering its strategic options, including finding a new acquirer, and adjust the ratings if necessary.
This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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