AM Best Affirms Credit Ratings for Members of Corebridge Financial

AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a” (Excellent) for the members of Corebridge Financial (Corebridge). The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the companies and ratings.)

The ratings of Corebridge reflect its balance sheet strength, which AM Best assesses as adequate, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management. Corebridge’s risk-adjusted capital position benefits from the large modified coinsurance agreement with Fortitude Reinsurance Company Ltd., which reduces much of the risk from the longer-term structured settlements book of business. The new holding company, Corebridge Financial, Inc., provides projections for leverage and coverage ratios that are within AM Best’s methodology guidelines, and the statutory entities are expected to remain well-capitalized. However, AM Best notes that as the separation continues there will still be execution risk, and current projections may not materialize as planned. Additionally, longer-term reallocation of Corebridge’s investment portfolio may have an adverse impact on future risk-adjusted capital.

AM Best continues to assess the group’s operating performance as strong. While AM Best acknowledges the headwinds of continued strong competition within the segment, Corebridge maintains a diversified product portfolio, along with spread and fee income that is consistent with strong operating peers. Corebridge’s individual and group retirement segments continue to produce consistent returns. The institutional products segment, consisting of pension risk transfer, stable value wrap, guaranteed investment contracts and bank-owned/corporate-owned life insurance, has been a growing portion of the business and is likely to see continued growth.

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed with stable outlooks for the following operating companies, which are collectively referred to as Corebridge Financial:

• AGC Life Insurance Company
• American General Life Insurance Company
• United States Life Insurance Company in the City of New York
• The Variable Annuity Life Insurance Company

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.

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