OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a-” from “bbb+” of Crown Global Life Insurance Ltd. (Bermuda), Crown Global Life Insurance (Bermuda) Limited and Crown Global Insurance Company of America (Delaware). Collectively, these companies are referred to as the Group. Concurrently, AM Best has upgraded the Long-Term ICR to “bbb-” from “bb+” of the parent holding company, Crown Global Insurance Group LLC (Crown Global) (Delaware). The outlook of these Credit ratings (ratings) has been revised to stable from positive.
The ratings reflect the Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Crown Global is a provider of private placement solutions for high net worth individuals and institutional clients in the United States and internationally. The company’s investment and liability profiles, which feature an entirely separate account product platform in which policyholders bear investment risks, contribute to its strength. Living benefits and secondary guarantees are not offered, and the company’s share of mortality risk is minimal, as only a small amount of mortality risk retained per life, with the vast majority of mortality risk reinsured with high quality reinsurers. The company’s operations also are supported by its very strong balance sheet, with the majority of its general account assets held in high quality investment grade bonds and cash or cash equivalents.
The rating upgrades reflect the company’s continuing ability to execute on its high net worth business strategy, including increasing fee-driven revenues through new business growth and prudent expense management. The increasing scale and favorable earnings trends that result are reflected in the company’s improved operating performance.
Partially offsetting these positive rating factors is concentration risk associated with the group’s unique high net worth client base, subjecting it to potential volatility from customer behavior and the potential impacts of an ever-changing regulatory landscape with respect to domestic and international taxation. AM Best views the companies’ ERM as appropriate given the group’s risk profile.
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