February 21, 2020 11:28 AM Central Standard Time, Oldwick, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” of Guaranty Income Life Insurance Company (GILIC) (Cedar Rapids, IA). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings of GILIC reflect its balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The balance sheet assessment is supported by the company’s strong risk-adjusted capitalization, aided by holding company support during the recent high-growth period and new product launches with a robust emphasis on asset and liability matching to reduce headwinds of spread compression and reduce the risk to the liability profile.
Offsetting rating factors include a lower quality of capital with use of surplus notes and execution risk from GILIC’s recent acquisition of the larger Lincoln Benefit Life Company.
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