OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best confirmed the financial strength rating of A ++ (superior) and the long-term issuer credit rating (long-term ICR) of “aa +” (superior) of Guardian Life Insurance Company of America (Guardian Life) (New York) , NY) and its principal subsidiaries, Guardian Insurance & Annuity Company, Inc. (Wilmington, DE) and Berkshire Life Insurance Company of America (Pittsfield, MA) (collectively referred to as Guardian). At the same time, AM Best confirmed the long-term issue credit rating (long-term IR) of “aa-” (superior) of Guardian Life’s excess notes. The outlook for these credit ratings (ratings) is stable. (See below for a detailed list of long-term IRs)
The ratings reflect the strength of Guardian’s balance sheet, which AM Best considers to be the strongest, as well as its strong operational performance, favorable business profile and very good enterprise risk management (ERM).
The group has maintained a strong risk-based capital profile and an industry-leading Best Capital Adequacy Ratio (BCAR). Guardian’s capital profile is further enhanced through access to capital markets through its moderate use of excess notes to support its operations. Guardian has leverage ratios that AM Best considers appropriate for the group’s credit profile. In addition, Guardian is less exposed to higher risks and less liquid assets than its peers.
Guardian benefits from its strong market position in all of its major business segments, which supports the group’s strong operational performance, as measured by premiums, returns on investment and underwriting performance. The consistency of Guardian’s balance sheet and operating performance is based on a historically lower risk profile built into the company’s ERM program. The company actively manages its exposure to credit risk as part of its ERM process and has demonstrated its ability to withstand prolonged credit exposure if it worsens.
The following long-term IRs have been confirmed with a stable outlook:
Guardian Life Insurance Company of America—
– “aa-” (Superior) on excess notes of $ 400 million at 7.375%, maturing in 2039
– “aa-” (Superior) on excess notes of $ 450 million at 4.875%, maturing in 2064
– “aa-” (Superior) on excess notes of $ 300 million at 3.70%, maturing in 2070
– “aa-” (Superior) on excess notes of $ 350 million at 4.85%, maturing in 2077
Guardian Life Global Funding – Program Rating “aa +” (Superior)
– “aa +” (Superior) on all banknotes in circulation issued under the program
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