Greg Lindberg Troubles Prompt AM Best To Downgrade Bankers Life Insurance Company

AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” of Colorado Bankers Life Insurance Company (CBL) (Durham, NC).

Concurrently, AM Best has placed under review with negative implications the FSR of B (Fair) and the Long-Term ICR of “bb+” of Bankers Life Insurance Company (BLIC) (Durham, NC). CBL and BLIC are subsidiaries of Global Bankers Insurance Group (GBIG).

These Credit Rating (rating) actions follow the announcement that Greg E. Lindberg, the ultimate owner of the companies, was indicted in a federal investigation relating to charges of wire fraud. These rating actions also follow an announcement that GBIG intends to pursue a sale of its U.S. life insurance companies, which include CBL and BLIC, and that GBIG has been in active discussions with potential acquirers. AM Best continues to be in communication with the management team at CBL and BLIC, and will continue to monitor any developments at the companies over the near term.

The ratings will remain under review pending an announcement of an acquisition candidate at which time AM Best will review the terms and intentions for GBIG going forward. Furthermore, AM Best will continue to monitor CBL and BLIC for any adverse developments in either company’s financial condition, and will monitor for effects of reputation risk as the company looks for a potential buyer.

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 Understanding 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 rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

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