OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a-” (Excellent) of Talcott Resolution Life Insurance Company, Talcott Life Re, Ltd. (Bermuda) and Talcott Resolution Life and Annuity Insurance Company. These companies are domiciled in Hartford, CT and collectively referred to as Talcott Financial Group (TFG). Additionally, AM Best has affirmed the Long-Term ICR of “bbb-” (Good) of Talcott Resolution Life, Inc. (Delaware), along with its Long-Term Issue Credit Ratings (Long-Term IRs). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the Long-Term IRs).
The ratings of TFG reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
TFG established itself quickly as a major player in the life and annuity reinsurance space with several large transactions completed since the group was acquired by Sixth Street, a global investment firm, in June 2021. The group has remained in a favorable risk-adjusted capital position since then, as measured by Best’s Capital Adequacy Ratio (BCAR), bolstered further by a strong liquidity framework that can provide substantial funds under hypothetical stress scenarios. AM Best also notes that TFG’s ERM framework is well-established with definitive tolerances, a focus on asset liability management and robust stress testing.
TFG’s last large activity involved a $7.4 billion variable annuity reinsurance transaction with The Guardian Insurance and Annuity Company Inc. in late 2022. However, the growth generated from deals completed in 2021 and 2022, has the group managing approximately $125 billion in liabilities with operational gains beginning to be realized for year-end 2023 and through the third quarter of 2024. Despite TFG operating in a very competitive market environment, AM Best believes the group will remain well-capitalized and will maintain its current business strategy of selectively growing its platform by providing risk-transfer solutions to the insurance industry through reinsurance or legal entity acquisitions.
The following Long-Term IRs have been affirmed with a stable outlook:
Talcott Resolution Life, Inc.—
— “bbb-” (Good) on $250 million 7.65% senior unsecured debentures, due 2027 (approximately $80 million outstanding)
— “bbb-” (Good) on $400 million 7.375% senior unsecured notes, due 2031 (approximately $63 million outstanding)
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