August 14, 2024 Newswires

AM Best Places Credit Ratings of Mountain Life Insurance Company Under Review With Developing Implications

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has placed under review with developing implications the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” (Fair) of Mountain Life Insurance Company (Mountain Life) (Lexington, KY).

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

The ratings of Mountain Life have been placed under review with developing implications as the company has been sold by Kentucky National Insurance Group, LLC to MEM Capital LLC (MEM Capital). Mountain Life now exists within MEM Capital's organizational structure.

The new ownership group plans to introduce a multi-year guaranteed annuity (MYGA) product to Mountain Life’s product portfolio, which will diversify the liability profile and provide a source of growth for the company. The MYGA product will be sold in all states in which the company is currently licensed and will have reinsurance support. There will also be a focus on improving investment management. Capital contributions will be provided and a capital maintenance agreement has been drafted to support the company’s growth plans.

Mountain Life’s ratings will remain under review with developing implications until AM Best can properly assess the company’s rating fundamentals, both financially and operationally.

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.