OLDWICK, N.J.--(BUSINESS WIRE)--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.
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