OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has downgraded the Long-Term Issuer Credit Rating
(Long-Term ICR) to “bbb” from “bbb+” of Colorado Bankers Life Insurance
Company (CBL) (Durham, NC). Concurrently, AM Best has downgraded the
Long-Term ICR to “bb” from “bb+” of Bankers Life Insurance Company
(BLIC) (Durham, NC). In addition, AM Best is maintaining the under
review with negative implications status on the Long-Term ICRs, as well
as on the Financial Strength Rating (FSR) of B++ (Good) of CBL and the
FSR of B (Fair) of BLIC.
These Credit Rating (rating) actions reflect the lack of statutory
financial data on CBL and BLIC, as both companies have delayed their
first-quarter 2019 statutory financial statement filings. AM Best
continues to be concerned with the elevated levels of bank loans and the
potential financial reporting issues. AM Best also questions the
company’s overall risk governance. The ratings of CBL and BLIC remain
under review with negative implications, and at this time, it is unknown
as to what adjustments the companies may make to address these concerns
and how they might impact capital and surplus levels. If any adjustments
result in material changes to risk-adjusted capitalization, additional
negative rating actions may occur.
In April 2019, the ratings of CBL and BLIC were placed under review with
negative implications following the announcement that Greg E. Lindberg,
the ultimate owner of the companies, was indicted in a federal
investigation related to charges of wire fraud. The rating actions taken
in April 2019 also followed an announcement that Global Bankers
Insurance Group, the parent of CBL and BLIC, has been in active
discussions with potential acquirers. While the Long-Term ICRs have been
downgraded at this time, AM Best continues to be in communication with
the management teams at CBL and BLIC, and will continue to monitor the
developments of the potential acquisition and indictment of Lindberg.
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 Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Jason MacKenzie
Financial Analyst
+1 908 439
2200, ext. 5649
[email protected]
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
[email protected]
Anthony McSwieney
Senior Financial Analyst
+1
908 439 2200, ext. 5715
[email protected]
Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
[email protected]
