OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” to Upstream Life Insurance Company (Upstream) (Dallas, TX). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Upstream’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 (ERM).
As a new company formation, AM Best requires a level of conservatism to be built into initial capital levels, and the very strong balance sheet assessment is based on Upstream’s current risk-adjusted capital level that provides support during the initial start-up period.
Partially offsetting rating factors are a limited product offering within a highly competitive product space in which Upstream will be competing, limited capital resources to draw from, and initial operating losses, which should reverse over time. Upstream’s business strategy is subject to execution risk, and it will need to continue to enhance its ERM risk measurement and modeling capabilities as its balance sheet and liability profile diversify in upcoming years.
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