OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb” from “bbb+” of Colorado Bankers Life Insurance Company (CBL) (Durham, NC). Concurrently, AM Best has downgraded the Long-Term ICR to “bb” from “bb+” of Bankers Life Insurance Company (BLIC) (Durham, NC). In addition, AM Best is maintaining the under review with negative implications status on the Long-Term ICRs, as well as on the Financial Strength Rating (FSR) of B++ (Good) of CBL and the FSR of B (Fair) of BLIC.
These Credit Rating (rating) actions reflect the lack of statutory financial data on CBL and BLIC, as both companies have delayed their first-quarter 2019 statutory financial statement filings. AM Best continues to be concerned with the elevated levels of bank loans and the potential financial reporting issues. AM Best also questions the company’s overall risk governance. The ratings of CBL and BLIC remain under review with negative implications, and at this time, it is unknown as to what adjustments the companies may make to address these concerns and how they might impact capital and surplus levels. If any adjustments result in material changes to risk-adjusted capitalization, additional negative rating actions may occur.
In April 2019, the ratings of CBL and BLIC were placed under review with negative implications following the announcement that Greg E. Lindberg, the ultimate owner of the companies, was indicted in a federal investigation related to charges of wire fraud. The rating actions taken in April 2019 also followed an announcement that Global Bankers Insurance Group, the parent of CBL and BLIC, has been in active discussions with potential acquirers. While the Long-Term ICRs have been downgraded at this time, AM Best continues to be in communication with the management teams at CBL and BLIC, and will continue to monitor the developments of the potential acquisition and indictment of Lindberg.
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