A.M. Best Assigns Credit Ratings to Generation Life Insurance Company

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has assigned a Financial Strength of A (Excellent) and a Long-Term Issuer Credit Rating of “a+” to Generation Life Insurance Company (GLIC) (Missouri), the ultimate parent of which is Swiss Re Ltd (Swiss Re). The outlook of these Credit Ratings (ratings) is stable.

The rating assignments primarily reflect A.M. Best’s expectation that the Swiss Re group will provide explicit support to GLIC as needed. GLIC was acquired by Swiss Re through the new brand, iptiQ Americas, in third-quarter 2016.

GLIC will benefit from a significant 80% quota share reinsurance protection from Swiss Re group entities. Additional capital infusions are planned if necessary in the next couple of years to support growth and cover start-up costs. GLIC will be the nationwide licensed carrier of iptiQ Americas. iptiQ Americas became part of Swiss Re Life Capital Ltd as a newly formed unit dedicated to managing primary U.S. life and health business.

Because GLIC is in the build-up phase, A.M. Best expects it to have a very conservative investment strategy, with sufficient liquidity to fund potential cash outflows. Additionally, the ratings reflect an expectation that GLIC will have supportive risk-adjusted capitalization despite net losses in the start-up phase of business operations, due to higher first-year commissions and development of on-boarding capabilities with a large number of distributors. Products primarily will include life insurance with a focus on biometric risk products, through a phased development approach beginning with a distribution channel and eventually becoming fully digital direct to the consumer.

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best

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Jim Peavy

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