AM Best Assigns Credit Ratings to CL Life and Annuity Insurance Company – InsuranceNewsNet

OLDWICK, NJ–(BUSINESS WIRE)–
AM Best assigned a financial strength rating (FSR) of B++ (good) and a long-term credit rating (long-term ICR) of “bbb+” (good) to CL Life Insurance and Annuity Company (CL Life) (Fort Worth, TX). The outlook attributed to these Credit Ratings (ratings) is stable.

The ratings reflect the strength of CL Life’s balance sheet, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate management of business risks.

CL Life, which launched in August 2022was initially capitalized with approximately $10 million, and is expected to have the highest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), with a low level of initial activity and high reinsurance leverage during the first two years of operation. The company expects to receive additional funds to support the expected growth of the annuity business. CL Life expects the expected growth of its new business to be measured, ensuring that capital remains at targeted levels while maintaining adequate liquidity within its established asset-liability management framework. The company’s investment portfolio is expected to focus on high-quality private corporate credit, as well as prime real estate mortgages, with an allocation above the industry average, leveraging the expertise in parent company investment, Crestline Investors, Inc.

CL Life does not yet have an established or projected position in the market, with a high degree of competition currently in the annuity market hampering the execution of its business plan.

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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based at United Statesthe company does business in more than 100 countries with regional offices in London, amsterdam, dubai, hong kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Igor Bass
Senior Financial Analyst

+1 908 439 2200 ext. 5109

[email protected]

Edward Kohlberg
Director

+1 908 439 2200 ext. 5664

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200 ext. 5159

[email protected]

Jeff Mango
General director,

Communications Strategy

+1 908 439 2200 ext. 5204

[email protected]

Source: AM Best