AM Best Downgrades and Withdraws Credit Ratings of Upstream Life Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has downgraded the Financial Strength Rating to C++ (Marginal) from B- (Fair) and the Long-Term Issuer Credit Rating to “b” (Marginal) from “bb-” (Fair) of Upstream Life Insurance Company (Upstream Life) (Dallas, TX). In addition, the outlook of these Credit Ratings (ratings) have been revised to negative from stable. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect Upstream Life’s balance sheet strength, which AM Best assesses as weak, as well as its marginal operating performance, limited business profile and weak enterprise risk management (ERM).

The rating downgrades reflect an Aug. 5, 2024, consent order by the Texas Department of Insurance outlining certain events at Upstream Life. These events exposed gaps in the corporate governance of the company and contributed to the ERM program being assessed as weak.

The negative outlooks reflect the potential impact of organizational changes on Upstream Life’s future operations.

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