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AM Best Places Credit Ratings of Lincoln Benefit Life Company Under Review With Negative Implications


AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Lincoln Benefit Life Company (Lincoln Benefit) (Lincoln, NE).

The Credit Rating (rating) actions follow the recent announcement that Kuvare US Holdings, Inc. entered into a definitive agreement to acquire Lincoln Benefit and its affiliates (collectively known as LBL). The transaction is expected to close by year-end 2019, and is subject to regulatory approval, after which point LBL will be a subsidiary of Guaranty Income Life Insurance Company (GILIC), a subsidiary of Kuvare US Holdings, Inc.

Lincoln Benefit’s current rating level may be subject to negative rating actions due to a decline in capital over the past several years, primarily caused by Lincoln Benefit’s funding of its captive subsidiary, as well as the impact on AM Best’s view of the company’s capital profile. Additionally, LBL will be a subsidiary of GILIC, a smaller, lower-rated company and the company anticipates operational and capital synergies for both entities on a post-acquisition basis. AM Best will continue to monitor the progress of the acquisition and will take further rating action as more information develops.

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.

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