OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Equitable Financial Life and Annuity Company (EFLA). The outlook of the Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings at the request of the company to no longer participate in AM Best’s interactive rating process.
The ratings reflect EFLA’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
EFLA’s capital and surplus growth has been deteriorating continuously over the past several years, but shown significant improvement over the past two years from enhanced net investment income and improved mortality experience. The company has continued to receive additional significant capital infusions over the past five years to further support its capital position and overall operations. Overall profitability has been on a steady decline until 2022 due to the run-off nature of EFLA’s business. The company's liabilities consist principally of whole life fixed premium interest-sensitive and 10-year, 15-year and 20-year level term life insurance products.
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