AM Best has affirmed the Financial Strength Rating (FSR) 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). Together, these companies 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 for these Credit Ratings (ratings) is stable.
Concurrently, AM Best has assigned the FSR of A (Excellent) and the Long-Term ICR of "a" to Global Atlantic Assurance Limited (GAAL) (Bermuda). The outlook assigned to the ratings is stable. The ratings of Global Atlantic are being extended to GAAL due to its strategic importance, which includes providing reinsurance solutions to its U.S. affiliates.
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. The balance sheet is supported by very strong risk-adjusted capitalization and the company’s robust asset-liability matching program. However, AM Best notes that the investment portfolio is viewed as higher risk due to allocations structured securities and other nontraditional fixed income assets. Additionally, the reserve profile is increasingly concentrated in interest sensitive liabilities due to the proportion of annuity sales relative to its life insurance products. Global Atlantic continues to maintain favorable market positions in its core annuity, life insurance and reinsurance assumption segments, which drive sustained trends in premium growth and earnings metrics. The company continues to show expansion of the business profile through additional distribution, including flow reinsurance and pension risk transfer agreements.
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Keith Behrmann, CFA, CAIA, ChFC, CLU
Senior Financial Analyst
+1 908 439 2200, ext. 5733
Ken Johnson, CFA, CAIA, FRM
+1 908 439 2200, ext. 5056
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644