AM Best Withdraws Credit Ratings of Corporate Solutions Life Reinsurance Company
OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Corporate Solutions Life Reinsurance Company (Corporate Solutions) (Wilmington, DE). The outlook of the Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings at the request of the company to no longer participate in AM Best’s interactive rating process.
The ratings reflect Corporate Solutions’ balance sheet strength, which AM Best assesses as strong, as well as the company’s marginal operating performance, very limited business profile and appropriate enterprise risk management.
Venerable Holdings, Inc. (Venerable) has successfully closed its transaction with Equitable Holdings, Inc. to reinsure legacy variable annuity policies sold between 2006 and 2008. As part of the transaction, Corporate Solutions has been acquired by Venerable.
Corporate Solutions’ capital and surplus has recently increased as a result of net income and unrealized capital gains related to its investment in Life Re, as opposed to declines in earlier years, as the company continues run off its in-force business. Corporate Solutions remains well-capitalized and has been assessed at the strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). The company has a high reinsurance dependence, partially mitigated by the use of highly rated reinsurers. The company maintains a conservative investment portfolio with investment-grade bonds comprising nearly all of its invested assets, which should help mitigate the impact of any investment impairments or earnings volatility.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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.
Copyright © 2021 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/20210617005781/en/
Igor Bass
Senior Financial Analyst
+1 908 439 2200, ext. 5109
[email protected]
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
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Thomas Rosendale
Senior Director
+1 908 439 2200, ext. 5120
[email protected]
Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
[email protected]
Source: AM Best
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