AM Best Comments on Credit Ratings of Talcott Resolution Life, Inc. and Its Subsidiaries Following Reinsurance Announcement

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has commented that the Credit Ratings (ratings) of Talcott Resolution Life, Inc. (Delaware) and its insurance subsidiaries, Talcott Resolution Life Insurance Company (TRL) (Windsor, CT) and Talcott Resolution Life and Annuity Insurance Company (Windsor, CT) (collectively known as TRG), remain unchanged following the Oct. 6, 2022, announcement of a reinsurance transaction between TRL and Guardian Insurance & Annuity Company, Inc. (GIAC), a wholly owned subsidiary of Guardian Life Insurance Company of America (Guardian).

The transaction follows several others made by various Talcott entities over the previous 18 months since it was acquired by Sixth Street, a leading global investment firm, in June 2021. Prior transactions include a flow reinsurance deal made with Lincoln Financial Group in September 2021; a large $20 billion deal with Allianz Life in December 2021; another transaction with Principal Financial Group in January 2022; and another fixed indexed annuity flow reinsurance deal made with a leading annuity writer in August 2022. In this latest announcement, TRL will reinsure approximately $7.4 billion in variable annuity liabilities from GAIC. The block of business being taken on is primarily composed of contracts with guaranteed living withdrawal benefit and death benefit riders. The transaction is expected to close by year-end 2022, subject to customary closing conditions.

Post-transaction, TRG will oversee approximately $130 billion in assets under management. AM Best believes that TRG will remain well-capitalized and will maintain its current business strategy of growing its platform by providing risk-transfer solutions to the insurance industry through reinsurance or legal entity acquisitions.

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.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Kevin Varvaro
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Source: AM Best