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A.M. Best Affirms Credit Ratings of Legal & General Group Plc’s U.S. Operations

November 16, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Nov 16, 2018--A.M. Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings of “aa-” of Banner Life Insurance Company (Banner Life) (Frederick, MD) and William Penn Life Insurance Company of New York (William Penn) (Valley Stream, NY). Banner Life and William Penn are referred to collectively as the Legal & General America Group (LGA) and represent the U.S. operations of the ultimate parent, Legal & General Group Plc (L&G), a worldwide insurance organization headquartered in the U.K. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect LGA’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.

LGA’s business profile remains favorable, despite a heavy dependence upon the highly competitive and commoditized term life market, reflecting its very strong market position and well-recognized brand.

While profitable, A.M. Best expects LGA to experience volatility in its statutory accounting results due to high levels of statutory expense strain anticipated from new business production and the effects of periodic reserve financing transactions as it grows its pension risk transfer business. LGA’s favorable capitalization, in addition to parental support on an as needed basis, enhances LGA’s ability to grow its businesses.

Over the past few years, LGA implemented a strategic asset allocation program whereby the group reduced its allocation to publicly issued investment grade bonds and increased its allocations to high-yield and non-144A private placement bonds and direct commercial mortgage loans. While A.M. Best expects these asset classes to increase the overall yield of the invested asset portfolio and improve asset-liability duration matching, these assets classes are less liquid and expose the group to potential asset impairments.

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181116005316/en/

CONTACT: David Marek

Financial Analyst

+1 908 439 2200, ext. 5340

david.marek@ambest.comWilliam Pargeans

Director

+1 908 439 2200, ext. 5359

william.pargeans@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comJim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 11/16/2018 10:30 AM/DISC: 11/16/2018 10:30 AM

http://www.businesswire.com/news/home/20181116005316/en

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