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AM Best Downgrades Credit Ratings of Mountain Life Insurance Company; Places Credit Ratings Under Review With Developing Implications

BY Business Wire | CORPORATE | 01/07/26 02:22 PM EST

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has downgraded the Financial Strength Rating to B- (Fair) from B (Fair) and the Long-Term Issuer Credit Rating to ?bb-? (Fair) from ?bb? (Fair) of Mountain Life Insurance Company (Mountain Life) (headquartered in Lexington, KY). Concurrently, AM Best has placed these Credit Ratings (ratings) under review with developing implications.

The ratings reflect Mountain Life?s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM).

The ratings were placed under review with developing implications following the finding of pending litigation between the holding company?s ultimate controlling party (UCP) and its other shareholders over ownership of the organization. Should the litigation against the UCP succeed, the existing capital maintenance agreement (CMA) would be rendered null and void as it is supported by the UCP. It is expected that in this event, the new owners will implement a new CMA with their backing. The ratings will remain under review with developing implications until the resolution of the ownership dispute.

The rating downgrades reflect an ERM program that has not evolved in line with the increased risk profile of the company since its acquisition by MeM Capital LLC. Based on the unanticipated ownership dispute, as well as the elevated financial leverage and high interest expense, AM Best assesses the company?s ERM as marginal.

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.

Copyright ? 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Source: AM Best

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