AM Best Comments on Credit Ratings of American National Group’s Members Following Announced Coinsurance Agreement With Reinsurance Group of America, Incorporated
August 28 2024 - 11:54AM
Business Wire
AM Best has commented that the Financial Strength Rating
of A (Excellent) and the Long-Term Issuer Credit Ratings of “a+”
(Excellent) of American National Insurance Company (ANICO) and its
affiliates, American National Life Insurance Company of Texas and
American National Life Insurance Company of New York (Glenmont,
NY), collectively known as American National Group (ANG), remain
unchanged following an announced coinsurance arrangement whereby
ANG will cede $3.5 billion of reserves to Reinsurance Group of
America, Incorporated. These Credit Ratings (ratings) were placed
under review with developing implications on July 11, 2024,
following the acquisition of American Equity Life Insurance Company
and its subsidiaries (see related press release).
The transaction closed Aug. 26, 2024, and is effective July 1,
2024. This ceded business is associated with several products
within the ANG’s life operations and is anticipated to increase its
capitalization and provide favorable returns. While there is no
immediate ratings impact, AM Best views this as potentially having
a favorable impact on the overall risk-adjusted capitalization on
ANG and will be considered as part of the ongoing review.
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.
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Christopher Lewis Senior Financial Analyst +1
908 882 2014 christopher.lewis@ambest.com Erik Miller,
CFA Director +1 908 882 5187
erik.miller@ambest.com Christopher Sharkey Associate
Director, Public Relations +1 908 882 2310
christopher.sharkey@ambest.com Al Slavin Senior Public
Relations Specialist +1 908 882 2318
al.slavin@ambest.com