A.M. Best Places Credit Ratings of Fidelity & Guaranty Life Holdings, Inc. and Its Subsidiaries Under Review With Developing Implications

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has placed under review with developing implications the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “bbb+” of the key life/health subsidiaries of Fidelity & Guaranty Life Holdings, Inc. (FGL) (Delaware). Concurrently, A.M. Best has placed under review with developing implications the Long-Term ICR and the Long-Term Issue Credit Rating (Long-Term IR) of “bb+” of FGL. (See below for a detailed list of the companies and ratings.)

The action follows the announcement on May 24, 2017, that FGL is being acquired by the special-purpose acquisition company, CF Corporation, for approximately $1.835 billion. The transaction is expected to close in the fourth quarter of 2017, subject to the approval of the shareholders of CF Corporation and FGL, and receipt of required regulatory approvals and other customary closing conditions.

A.M. Best anticipates that FGL’s ratings will likely be removed from under review following the close of the transaction and the completion of A.M. Best’s discussions with management. Any actual and/or anticipated changes to FGL’s financial profile will be reviewed to assess the impact on the company’s Credit Ratings.

The FSR of B++ (Good) and the Long-Term ICRs of “bbb+” have been placed under review with developing implications for the following key life/health subsidiaries of Fidelity & Guaranty Life Holdings, Inc.:

• Fidelity & Guaranty Life Insurance Company
• Fidelity & Guaranty Life Insurance Company of New York

The following Long-Term IR has been placed under review with developing implications:

-- “bb+” on $300 million 6.375% senior unsecured notes, due 2021

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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

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A.M. Best

Jason MacKenzie

Financial Analyst

+1 908 439 2200, ext. 5649

jason.mackenzie@ambest.com

or

Thomas Rosendale

Director

+1 908 439 2200, ext. 5649

thomas.rosendale@ambest.com

or

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

or

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: A.M. Best