AM Best has downgraded the Financial Strength Rating to C- (Weak) from C+ (Marginal) and the Long-Term Issuer Credit Rating to “ccc-” (Weak) from “b-” (Marginal) of Atlantic Coast Life Insurance Company (Charleston, SC) and Sentinel Security Life Insurance Company (Salt Lake City, UT). Both companies are collectively referred to as A-CAP Group. Concurrently, AM Best has maintained the under review with negative implications status for these Credit Ratings (ratings).

The ratings reflect A-CAP Group’s balance sheet strength, which AM Best assesses as very weak, as well as its marginal operating performance, very limited business profile and marginal enterprise risk management (ERM).

The rating downgrades are based on the termination of A-CAP Group’s agreement with Oaktree Capital Management to inject much-needed capital, prompting AM Best to revise the balance sheet strength assessment downward to very weak from weak and the business profile assessment to very limited from limited. AM Best notes that ACAP Group is in discussions with another possible capital provider. These ratings downgrades follow AM Best’s Sept. 22, 2026, downgrades that were based on an increasing weakness in ACAP Group’s balance sheet strength and operating performance during the first half of 2026 (see related press release).

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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