December 11, 2024 Reinsurance

AM Best Assigns Credit Ratings to Atlanta Life Insurance Company

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb” (Good) to Atlanta Life Insurance Company (ALIC) (Atlanta, GA). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect ALIC’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM).

In January 2023, Atlanta Life Holdings acquired ALIC, the 100-plus year-old Georgia-domiciled insurance company, and made a capital contribution in conjunction with the acquisition. ALIC’s balance sheet strength assessment is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to support the company’s strategic growth initiatives going forward. Additionally, the balance sheet strength assessment reflects ALIC’s strong liquidity profile and conservative investment strategy. Furthermore, the company’s balance sheet has benefited from the implicit and explicit support provided by its ultimate parent, Amistad Financial Group, LLC.

ALIC operates in the group insurance market as an employee benefits provider to private and public sector employers and a reinsurance provider to insurance carriers. ALIC’s operating performance is assessed as marginal, due to its recent re-entry into the group benefits and reinsurance market. The company has a new management team to support its growth plan, has expanded its licenses and has executed new reinsurance treaties with several major insurance carriers. AM Best expects these strategic initiatives to continue to generate improved operating results over the intermediate term.

AM Best assesses the company’s business profile as limited due to its recent re-entry into the overall market. Based on ALIC’s business plan, retail products are in development and the company’s general agency, Atlanta Life General Agency, is being relaunched. Furthermore, ALIC’s business plan details its continued mission of “closing the coverage gap” with a retail market strategy focused on providing life insurance and annuity product solutions to the middle-market and underserved market segments. The company’s ERM program is assessed as marginal given the significant changes to the organization over the past two years. ALIC has implemented a full ERM framework, but as the company continues to enter new growth phases, the company must continue to evolve its risk management framework.

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.