AM Best Assigns Issue Credit Rating to Guardian Life Insurance Company of America’s Surplus Notes

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has assigned a Long-Term Issue Credit Rating of “aa-” to the $300 million 3.7% 50-year surplus notes recently issued by Guardian Life Insurance Company of America (Guardian) (New York, NY). The outlook assigned to the Credit Rating (rating) is stable.

The rating reflects Guardian’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management.

AM Best expects Guardian to utilize the proceeds of the surplus notes for general corporate purposes. Financial leverage remains modest on an adjusted debt-to-capital basis and interest coverage is more than adequate due to favorable earnings in recent periods. AM Best notes that net income increased to $680 million in 2019 from $465 million in 2018, on a statutory basis, primarily due to improved mortality in its individual life insurance business and improved earnings in its individual annuity segment. Capital and surplus also has increased over the past year and risk-adjusted capitalization remains at the strongest level, as measured by Best’s Capital Adequacy Model.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.