March 31, 2026 Reinsurance

AM Best Affirms Credit Ratings of Fidelity & Guaranty Life Holdings, Inc. and Its Life/Health Subsidiaries

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” (Excellent) of Fidelity & Guaranty Life Insurance Company (Des Moines, IA) and Fidelity & Guaranty Life Insurance Company of New York (New York, NY). These subsidiaries of Fidelity & Guaranty Life Holdings, Inc. (FGLH) (Delaware), are referred to collectively as Fidelity & Guaranty Life Group (FGL). In addition, AM Best has affirmed the Long-Term ICR of “bbb” (Good) of FGLH. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect FGL’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).

FGL maintains a very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). FGL also maintains favorable liquidity due to strong operating cash flows and substantial surrender protection on its inforce annuity blocks of business. In addition, FGL has financial flexibility, with access to the financial markets through its holding company, F&G Annuities and Life, Inc. AM Best also notes the continued commitment from Fidelity National Financial, Inc., with its 70% ownership in FGL. While risk-adjusted capital remains very strong, the group’s overall quality of capital is diminished by materially increasing reinsurance leverage, the use of captive financial solutions and the use of surplus notes. AM Best does note, however, that counterparty risk is mitigated somewhat as FGL uses highly rated reinsurers. Additionally, FGL maintains a higher risk investment portfolio with material allocations to private credit and mortgage-related holdings. However, a history of low and stable credit-related impairments, as well as the investment expertise of Blackstone, partially mitigate this risk.

FGL’s business profile continues to evolve in line with its strategic shift to a more fee-based, less capital-intensive business model. FGL has maintained a top 10 market position within its core fixed-indexed annuity segment within the independent agent channel. Strong sales continue to be enhanced by growth in other distribution channels that include leading market positions in regional banks and broker dealers. FGL continues to expand its presence materially in the institutional markets sector with its pension risk transfer and funding-agreement backed notes solutions, depending on market dynamics. FGL continues to supplement sales with its indexed universal life insurance business.

The group has experienced some volatility within its statutory net operating results. Both reinsurance activity and other one-time items have impacted the top and bottom line results in recent years. Driven by the evolving strategy, premiums growth has been supplemented by fee income, as well as a steady stream of net investment income.

AM Best expects overall statutory and GAAP operating results to stabilize over the near to medium term due to gains in economies of scale as the company continues to grow premiums, while maintaining current interest rate spreads within its core fixed annuity business. Currently, FGL’s ERM capabilities are appropriately matched to the organization’s overall risk profile. A strong risk framework and stress-testing expertise continue to evolve to support the group’s strategy and are expected to limit volatility and support decision-making efforts going forward.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.