AM Best Upgrades Issuer Credit Rating of Gulf Guaranty Life Insurance Company

BY Business Wire | CORPORATE | 12/16/21 02:54 PM EST

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has upgraded the Long-Term Issuer Credit Rating to ?bbb+? (Good) from ?bbb? (Good) and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Gulf Guaranty Life Insurance Company (Gulf Guaranty Life) (Flowood, MS). The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook of the FSR is stable.

These Credit Ratings (ratings) reflect Gulf Guaranty Life?s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The upgrade of Long-Term ICR reflects the strengthening of Gulf Guaranty Life?s ERM practices. Since early 2020, the company has implemented elements of a formal ERM process including inherent and residual risks assessments, risk controls and oversight, and committee structure. Gulf Guaranty Life also implemented an ERM software application. These initiatives enhanced the company?s existing qualitative risk management by quantifying its risk exposure. Additionally, in 2020, Gulf Guaranty Life developed and implemented a formal risk appetite statement. This enhanced ERM program was demonstrated throughout 2021 by several risk-driven strategic initiatives.

Gulf Guaranty Life?s balance sheet strength assessment of strong is based on its strongest level of risk-adjusted capitalization, as measured by Best?s Capital Adequacy Ratio (BCAR); this is partially offset by a relatively low level of absolute capital and surplus, and an elevated level of higher risk investments.

The company?s favorable operating performance has been driven by pre-tax net operating gains owing to consistent investment income and improving underwriting experience. The company posted sizeable premium growth driven by market demand for its limited benefit medical product. While the company has shifted its business mix in recent years to more group limited benefit medical products in comparison with its credit and final expense products, it maintains a relatively modest, but growing, share of the highly competitive group limited benefit medical market. Additionally, premium is concentrated in this market segment, as well as in the Southeast United States.

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 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

Copyright ? 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Source: AM Best

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