AM Best Removes From Under Review With Developing Implications and Upgrades Credit Ratings of Sunset Life Insurance Company of America

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with developing implications and upgrades the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a-” ((Excellent) from “bbb+” (Good) of Sunset Life Insurance Company of America (Sunset Life) (Kansas City, MO). The outlook assigned to the Credit Ratings (ratings) is stable.

The ratings reflect Sunset Life’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Sunset Life’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is projected to remain at the assessed level of very strong or better as the company executes on its business strategy of marketing annuity products, primarily through the independent marketing organization channel. In addition, the company will benefit from capital commitments and the financial resources of Investcorp, a global investment manager, specializing in alternative investments across private equity, real estate, credit, absolute return strategies, general partner stakes, infrastructure and insurance asset management. Investcorp, which was founded in 1982, has over $40 billion of assets under management. Sunset Life also maintains good financial flexibility and liquidity resources, including a Federal Home Loan Bank membership and the ability for the holding company to issue debt. While the company will not be utilizing third-party reinsurance in the near term, this could be an option if needed during times of stress.

While Sunset Life benefits from a strong management team, scalable business model and an administrative platform that will enable end-to-end digital processing, the company is entering a highly competitive market that increases execution risks associated with new startups. However, this is mitigated partially by the company’s enterprise risk management capabilities that include comprehensive stress testing. In addition, Sunset Life’s other operational functions already have been established fully. AM Best will continue to monitor Sunset Life’s ability to execute on its current business plan without any material adverse deviation from expected capitalization levels and earnings expectations.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.