AM Best Affirms Credit Ratings of Globe Life Inc. and its Subsidiaries
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (ICR) of “a+” (Excellent) for Globe Life Inc.'s key life/health subsidiaries. The outlook on these ratings is stable. Globe Life's strong balance sheet and operating performance, along with its favorable business profile and enterprise risk management, underpin these ratings. Although there was a temporary decline in statutory earnings due to increased COVID-related mortality claims, a decrease in these claims in 2022 has led to a rebound in earnings.
- Affirmed FSR of A (Excellent) and ICR of 'a+' (Excellent) with stable outlooks.
- Strong balance sheet and very strong operating performance indicated by AM Best.
- Year-end capital and surplus increased despite dividend payments.
- Geographically diversified product offerings and acquisition of Beazley Benefits enhance market position.
- Temporary decline in statutory earnings due to COVID-related mortality claims.
- Higher allocation to Class 2 bonds makes Globe Life susceptible to credit downgrades.
The ratings reflect Globe Life’s balance sheet strength, which AM Best assesses as strong, as well as its very strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Globe Life’s risk-based capital is assessed within the strong category, as measured by Best’s Capital Adequacy Ratio (BCAR), which is an improvement from the prior year’s capital assessment and is supportive of its balance sheet strength assessment. On a statutory basis, year-end capital & surplus increased, but was hampered by continued dividend payments to the parent company,
The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed with stable outlooks for the following life/health subsidiaries of
-
American Income Life Insurance Company -
Globe Life and Accident Insurance Company -
Liberty National Life Insurance Company -
United American Insurance Company -
Globe Life Insurance Company of New York -
National Income Life Insurance Company -
Family Heritage Life Insurance Company of America
The following Short-Term IR has been affirmed:
— AMB-1 (Outstanding) on commercial paper
The following Long-Term IR’s have been affirmed with stable outlooks:
— “bbb+” (Good) on
— “bbb+” (Good) on
— “bbb+” (Good) on
— “bbb+” (Good) on
— “bbb-” (Good) on
The following indicative Long-Term IRs available under the shelf registration have been affirmed with stable outlooks:
— “bbb+” (Good) on senior unsecured debt
— “bbb” (Good) on subordinated debt
— “bbb-” (Good) on preferred stock
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
Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220811005691/en/
Senior Financial Analyst
+1 908 439 2200, ext. 5365
shauna.nelson@ambest.com
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jacqalene Lentz
Director
+1 908 439 2200, ext. 5762
jacqalene.lentz@ambest.com
Managing Director,
+1 908 439 2200, ext. 5204
jeffrey.mango@ambest.com
Source: AM Best
FAQ
What ratings did AM Best affirm for Globe Life (GL) in 2022?
What is the outlook on Globe Life's credit ratings?
How did COVID-related claims affect Globe Life's earnings?
What is the financial strength of Globe Life according to AM Best?