OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of “aa-” to the $300 million 3.7% 50-year surplus notes recently issued by Guardian Life Insurance Company of America (Guardian) (New York, NY). The outlook assigned to the Credit Rating (rating) is stable.
The rating reflects Guardian’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management.
AM Best expects Guardian to utilize the proceeds of the surplus notes for general corporate purposes. Financial leverage remains modest on an adjusted debt-to-capital basis and interest coverage is more than adequate due to favorable earnings in recent periods. AM Best notes that net income increased to $680 million in 2019 from $465 million in 2018, on a statutory basis, primarily due to improved mortality in its individual life insurance business and improved earnings in its individual annuity segment. Capital and surplus also has increased over the past year and risk-adjusted capitalization remains at the strongest level, as measured by Best’s Capital Adequacy Model.
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