AM Best Affirms Credit Ratings of Constellation Insurance, Inc. and Members of AuguStar Life Group and Its Subsidiary
OLDWICK, N.J.--(BUSINESS WIRE)--Dec 4, 2024--
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of AuguStar Life Insurance Company (ALIC) and its wholly owned subsidiary, AuguStar Life Assurance Corporation (together referred to as AuguStar Life Group). These companies are the principal insurance subsidiaries of Constellation Insurance, Inc. (Constellation). Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of National Security Life and Annuity Company (NSLAC). Additionally, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) of Constellation. Finally, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of Constellation and ALIC. The outlook of these Credit Ratings (ratings) is stable. All companies are headquartered in Cincinnati, OH. (See below for a detailed listing of the Long-Term IRs.)
The ratings of AuguStar Life Group (AuguStar) reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
AM Best assesses AuguStar’s risk-adjusted capitalization as strongest, as measured by Best’s Capital Adequacy Ratio (BCAR). This measure is a key to the group’s balance sheet strength; however, capital also is supported through its utilization of reinsurance treaties of both unaffiliated partners and captives used to manage AuguStar’s product risk. Growth of capital is supported by positive operating performance trends through a diversified source of revenue. AM Best also acknowledges AuguStar’s growth of business by adding a large variable annuity (VA) block transaction in 2023 and its recently closed acquisition with Zurich Insurance Group’s annuity portfolio of $2.1 billion consisting of approximately 38,000 annuitants. This also positions Ohio National Seguros de Vida S.A., Constellation’s Chilean subsidiary as the seventh largest annuity provider in that market. In its home U.S. market, AuguStar has a competitive market position in its traditional individual life business where it has built a strong and diverse distribution system composed of career agency and personal producing general agents.
The ratings of NSLAC reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, very limited business profile and appropriate ERM. The ratings reflect AuguStar’s commitment to NSLAC and its management of the run-off VA block, where its risk has been mitigated through reinsurance. This subsidiary remains well-capitalized for its remaining risks and exhibits strong liquidity measures.
The following Long-Term IRs have been affirmed with stable outlooks:
Constellation Insurance, Inc.—
-- “bbb+” (Good) on $425 million 5.55% senior unsecured notes, due January 2030
-- “bbb+” (Good) on $250 million 6.625% senior unsecured notes, due May 2031
AuguStar Life Insurance Company—
-- “a-” (Excellent) on $50 million 8.50% surplus notes, due May 2026
-- “a-” (Excellent) on $250 million 6.875% surplus notes, due June 2042
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 officeresponsible for issuing each of the individual ratings referenced in this release, please see AM Best’sRecent Rating Activityweb page. For additional information regarding the use and limitations of Credit Rating opinions, please viewGuide 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 viewGuide 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, visitwww.ambest.com.
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SOURCE: AM Best
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