AM Best Withdraws Credit Ratings of Corporate Solutions Life Reinsurance Company
AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of "bbb-" (Good) of Corporate Solutions Life Reinsurance Company (Corporate Solutions) (Wilmington, DE). The outlook of the Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings at the request of the company to no longer participate in AM Best's interactive rating process.
The ratings reflect Corporate Solutions' balance sheet strength, which AM Best assesses as strong, as well as the company's marginal operating performance, very limited business profile and appropriate enterprise risk management.
Venerable Holdings, Inc. (Venerable) has successfully closed its transaction with Equitable Holdings, Inc. to reinsure legacy variable annuity policies sold between 2006 and 2008. As part of the transaction, Corporate Solutions has been acquired by Venerable.
Corporate Solutions' capital and surplus has recently increased as a result of net income and unrealized capital gains related to its investment in Life Re, as opposed to declines in earlier years, as the company continues run off its in-force business. Corporate Solutions remains well-capitalized and has been assessed at the strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). The company has a high reinsurance dependence, partially mitigated by the use of highly rated reinsurers. The company maintains a conservative investment portfolio with investment-grade bonds comprising nearly ll of its invested assets, which should help mitigate the impact of any investment impairments or earnings volatility.
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