OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Rating of “a-“ of Commercial Travelers Life Insurance Company, (Commercial Travelers) (Utica, NY), which is a subsidiary of National Guardian Life Insurance Company (National Guardian Life).
The under review with negative implications status follows the recently announced strategic partnership between National Guardian Life and Insurance Capital Group (ICG), a New York-based strategic investor in the mutual insurance industry, through ICG’s subsidiary, Federal Life Group, Inc. The two entities have jointly developed and launched a national dental and vision insurance business called BrightBenefits, which will be issuing new business through Commercial Travelers. In conjunction with the new strategic partnership, ICG is expected to make a significant equity investment in Commercial Travelers, subject to regulatory approval.
AM Best expects that this new strategic partnership, together with the recent sale of Commercial Travelers’ inforce student college, accident and special risk business, will have a material impact on Commercial Travelers’ business profile. As a result, the ratings of Commercial Travelers will remain under review until AM Best has met with company management and reviewed the group’s strategic and financial plans to assess the impact on the company’s ratings.
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