March 13, 2026 Reinsurance

AM Best Removes From Under Review With Developing Implications and Downgrades Credit Ratings of Banner Life Insurance Company and William Penn Life Insurance Company of New York

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has removed from under review with developing implications and downgraded the Financial Strength Rating to A (Excellent) from A+ (Superior) and the Long-Term Issuer Credit Ratings to “a+” (Excellent) from “aa-” (Superior) of Banner Life Insurance Company (Frederick, MD) and William Penn Life Insurance Company of New York (New York, NY) collectively referred to as Banner Life Group (Banner). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Banner’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM). The strategic importance of Banner, to its parent company, Meiji Yasuda Life Insurance Company (Meiji Yasuda), also was considered as part of the ratings.

The rating actions reflect the recent completion of the acquisition of Banner by Meiji Yasuda and the standalone assessment decoupled from Legal & General Group Plc’s (L&G) rating. AM Best expects Banner’s management team, organizational structure and business strategy to remain with some oversight provided by Meiji Yasuda who will now have representation on the group’s board of directors. The ratings reflect the early stages of Banner’s establishment as Meiji Yasuda’s main U.S. individual life insurer and its only pension risk transfer (PRT) presence, expanding its footprint in the U.S. insurance markets. Banner’s advanced underwriting technological capabilities are expected to be a competitive advantage in a market that is shaped by consumer experience. The group has a track record of growth in its core markets as a leading term life carrier, and benefits from a strategic partnership in growing its U.S. PRT business with both Meiji Yasuda and L&G. Banner’s premiums growth is expected to continue to generate favorable statutory operating gains going forward.

Banner’s balance sheet reflects its risk-adjusted capital, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best notes that capital has fluctuated historically due to statutory business strain and the impact of reinsurance transactions, but capital contributions have been utilized to maintain appropriate capitalization. As part of the strategic partnership with L&G, Banner is reinsuring a material amount of its in-force and new PRT business to a reinsurance entity within the L&G organization. Banner is expected to maintain a target risk-based capital of at least 400% under its new ownership. The investment mix is currently in line with peers, with allocations to a diversified portfolio of investment grade bonds and commercial mortgage loans.

Banner’s ERM program is comprehensive and well-developed as the organization maintains good governance structure and appropriate controls, and this is expected to be enhanced further under its new ownership.

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.