OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has downgraded the Financial Strength Rating to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Rating to “a-“ from “a+” of Foresters Life Insurance and Annuity Company (FLIAC) (New York, NY). Concurrently, AM Best has placed the Credit Ratings (rating) under review with negative implications.
The ratings reflect FLIAC’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The rating downgrades reflect the fact that FLIAC no longer plays an important role in the insurance operations of The Independent Order of Foresters. These rating actions follow the announcement by Foresters Financial of its sale of FLIAC to Nassau Life Insurance Company (Nassau Life) (headquartered in Hartford, CT). Foresters Financial will hold the proceeds from the sale for general corporate purposes, including to fund organic growth in Foresters Financial’s insurance operations in Canada and the United States. The transaction is in line with Foresters Financial’s strategy of focusing on its core life insurance and retirement needs of its members, while also fostering community outreach.
This transaction is expected to close during the first quarter of 2020, pending regulatory approvals. These ratings will remain under review pending the closing of the sale and completion of AM Best’s analysis of the transaction and FLIAC’s role within the Nassau Life enterprise.
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