AM Best Upgrades Credit Ratings for Most of Talcott Resolution Life, Inc.’s Subsidiaries

AM Best has upgraded the Financial Strength Rating (FSR) to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) to “a-” (Excellent) from “bbb+” (Good) for Talcott Resolution Life Insurance Company and Talcott Resolution Life and Annuity Insurance Company. These companies are domiciled in Hartford, CT. Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Talcott Life Re, Ltd. (Bermuda). These companies are collectively referred to as Talcott Financial Group (TFG). Additionally, AM Best has affirmed the Long-Term ICR of “bbb-” (Good) of Talcott Resolution Life, Inc. (Delaware), along with its Long-Term Issue Credit Ratings (Long-Term IRs). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the Long-Term IRs).

The ratings reflect TFG’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

TFG has established itself quickly as a major player in the life and annuity reinsurance space with several large transactions completed since the group was acquired by Sixth Street, a global investment firm, in June 2021. The group has remained in a favorable risk-adjusted capital position, as measured by Best’s Capital Adequacy Ratio (BCAR), bolstered further by a strong liquidity framework that can provide substantial funds under several key economic stress scenarios. AM Best notes that TFG’s ERM framework is well-established and continues to evolve with emerging risks.

While no transactions have been initialized in 2023, the growth provided by deals over the previous two years has the group managing approximately $123 billion in assets with operational gains beginning to be realized when removing for asset value fluctuations driven by the rise in interest rates. While TFG operates in a very competitive market environment, AM Best believes that TFG will remain well-capitalized and will maintain its current business strategy of growing its platform by providing risk-transfer solutions to the insurance industry through reinsurance or legal entity acquisitions.

The following Long-Term IRs have been affirmed with a stable outlook:

Talcott Resolution Life, Inc.—

-- “bbb-” (Good) on $250 million 7.65% senior unsecured debentures, due 2027 (approximately $80 million outstanding)

-- “bbb-” (Good) on $400 million 7.375% senior unsecured notes, due 2031 (approximately $63 million outstanding)

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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