February 21, 2019 - 3:39 PM EST
AM Best Affirms Credit Ratings of Global Atlantic Financial Group Limited and Its Subsidiaries
AM Best Affirms Credit Ratings of Global Atlantic Financial Group Limited and Its Subsidiaries


AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of Commonwealth Annuity and Life Insurance Company (Brighton, MA), its subsidiaries, First Allmerica Financial Life Insurance Company (Brighton, MA), Forethought Life Insurance Company (Indianapolis, IN), Accordia Life and Annuity Company (Des Moines, IA), and its affiliate, Global Atlantic Re Limited (Bermuda), which together operate as the Global Atlantic Group (Global Atlantic). AM Best also has affirmed the Long-Term ICRs of “bbb” of Global Atlantic Financial Group Limited (Bermuda), the ultimate parent holding company, and its wholly owned subsidiaries Global Atlantic Financial Life Limited (Bermuda) and Global Atlantic (Fin) Company (Bermuda) (FinCo). Additionally, AM Best has affirmed the Long-Term Issue Credit Rating of “bbb” on the $150 million 8.625% senior unsecured notes, due 2021, initially issued by Forethought Financial Group, Inc. and assumed by FinCo. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Global Atlantic’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. Global Atlantic has shown consistent growth in equity and maintained very strong risk-adjusted capitalization metrics. Additionally, the organization has demonstrated its ability to access external capital and deploy excess capital to support the growth of its business lines. AM Best notes the company’s investment portfolio maintains elevated allocations to structured securities, which are viewed as higher risk due to liquidity concerns in stressed markets and require a higher level of investment management expertise. Global Atlantic continues to maintain favorable market positions in its core annuity, life and reinsurance business lines; however, AM Best notes that the reserve profile is becoming increasingly concentrated in fixed annuities due to the scale of its retirement business, across individual and institutional activity, relative to its life sales.

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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Keith Behrmann, CFA, CAIA, ChFC, CLU
Senior Financial Analyst
+1 908 439 2200, ext. 5733

Ken Johnson, CFA, CAIA, FRM
Senior Director
+1 908 439 2200, ext. 5056

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644

Source: Business Wire (February 21, 2019 - 3:39 PM EST)