OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has removed from under review with negative implications and changed the Financial Strength Rating (FSR) to a Non-Rating Designation of E (Under Regulatory Supervision) from B++ (Good) and the Long-Term Issuer Credit Rating to “e” from “bbb” of Colorado Bankers Life Insurance Company (CBL) (Durham, North Carolina). Concurrently, AM Best has removed from under review with negative implications and changed the FSR to a Non-Rating Designation of E (Under Regulatory Supervision) from B (Fair) and the Long-Term Issuer Credit Rating to “e” from “bb” of Bankers Life Insurance Company (BLIC) (Durham, North Carolina). These rating actions follow a court decision that placed the company into rehabilitation.
CBL and BLIC were placed into rehabilitation on June 27, 2019, by the Superior Court of Wake County, North Carolina. In April 2019, ultimate controlling shareholder Greg Lindberg was indicted in a federal investigation related to charges of wire fraud, and it was announced that the group was active in discussions with potential acquirers to sell the operating insurance companies. The group has been unable to sell CBL and BLIC at this time and the companies will begin a rehabilitation process. The North Carolina Commissioner of Insurance has been appointed as the rehabilitator for CBL and BLIC.
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