A.M. Best Upgrades Financial Strength Rating of F&G Annuities & Life's Primary Operating Companies to 'A'; Outlook Stable
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Insights
The upgrade of Fidelity & Guaranty Life Insurance Company and its New York subsidiary's financial strength ratings, as well as the long-term issuer credit rating of Fidelity & Guaranty Life Holdings, Inc., reflects a positive assessment of the company's financial stability and creditworthiness. This upgrade to an 'A' rating by A.M. Best, a reputable credit rating agency, signals to investors and policyholders a strong balance sheet and a reliable track record. The stable outlook suggests a low likelihood of a rating change in the near term, which could influence investor confidence positively.
From a financial perspective, such an upgrade may lead to lower borrowing costs and improved terms for new debt, as lenders often associate higher credit ratings with lower default risk. For stakeholders, the improved ratings could potentially result in an increased demand for the company's insurance products, as customers often seek out providers with strong financial ratings, thereby potentially driving up profitability.
The insurance sector is highly sensitive to financial strength ratings since they directly impact consumer trust and the competitive positioning of an insurer. An 'A' (Excellent) rating is indicative of a robust financial condition and operational performance. This upgrade for Fidelity & Guaranty Life Insurance Company and its subsidiaries could enhance their marketability to potential clients looking for secure insurance solutions. It also demonstrates a commitment to financial transparency and strategic growth.
For the industry, this rating upgrade could prompt competitors to reassess their strategies to maintain or improve their own ratings. Insurers with lower ratings may face pressure to improve their risk management practices and financial performance to remain competitive. The upgrade also highlights the importance of diversified growth strategies in the insurance industry, which can include product innovation, market expansion and investment in technology.
Credit ratings are a critical component in risk management for insurance companies. The upgraded ratings of Fidelity & Guaranty Life Insurance Company suggest a robust risk management framework that effectively identifies, assesses and mitigates potential risks. This can reassure stakeholders that the company is well-equipped to handle unforeseen events or market volatility.
An 'A' rating also typically reflects a strong ability to meet ongoing insurance obligations, which is crucial for long-term sustainability. For risk managers, this upgrade can serve as a case study in the successful implementation of risk management strategies that align with business growth objectives. It also underscores the importance of maintaining financial strength and operational efficiency in achieving favorable credit ratings, which in turn support business resilience.
"We are excited that A.M. Best has upgraded F&G's insurance subsidiaries to an 'A' rating, which we believe recognizes our proven track record, balance sheet strength, financial transparency and commitment to achieving rating upgrades over time," said Chris Blunt, President and Chief Executive Officer. "Looking forward, we are well positioned to expand our reach as a leading 'A' rated provider of insurance solutions as we execute on our diversified growth strategy, with multiple levers to grow our business and expand our profitability and returns."
A.M. Best is one of the four major credit rating agencies utilized by F&G to provide an independent assessment of the Company's financial strength and creditworthiness. The full list of F&G's associated entities receiving an upgrade is available on A.M. Best's website.
About F&G
F&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in
Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are not related to present facts or current conditions or that are not historical facts, as well as statements that address activities, events, or developments that F&G anticipates will or may occur in the future. You can identify forward-looking statements by words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "predict," "project," "seek," "outlook," "future," "will," "would," "should," "could," "may," "can have," "likely" and similar terms. Forward-looking statements include statements based on management's current expectations and assumptions about future events. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which are beyond F&G's control, that could cause actual results to differ materially from those in or implied by the forward-looking statements. Factors that may cause such differences include the risks and uncertainties described in F&G's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release. F&G disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments, changes in assumptions or otherwise.
Contact:
Lisa Foxworthy-Parker
SVP of Investor & External Relations
515.330.3307
Investor.relations@fglife.com
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SOURCE F&G Annuities & Life, Inc.
FAQ
What are the upgraded financial strength ratings of F&G's primary operating companies?
What is the upgraded long-term issuer credit rating of Fidelity & Guaranty Life Holdings, Inc.?
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