AM Best assigns credit ratings to CL Life and Annuity Insurance Company

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OLDWICK, NJ–(BUSINESS WIRE)–AM Best assigned a financial strength rating (FSR) of B++ (good) and a long-term credit rating (Long-term ICR) of “bbb+” (good) to CL Life and Annuity Insurance Company (CL Life) (Fort Worth , TX). The outlook attributed to these Credit Ratings (ratings) is stable.

The ratings reflect the strength of CL Life’s balance sheet, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate management of business risks.

CL Life, which launched in August 2022, was initially capitalized with approximately $10 million and is expected to have the highest risk-adjusted level of capitalization as measured by the capital adequacy ratio (BCAR) of Best, with a low level of initial activity and high reinsurance leverage in the first two years of operation. The company expects to receive additional funds to support the expected growth of the annuity business. CL Life expects the expected growth of its new business to be measured, ensuring that capital remains at targeted levels while maintaining adequate liquidity within its established asset-liability management framework. The company’s investment portfolio is expected to focus on high-quality private corporate credit, as well as prime real estate mortgages, with an allocation above the industry average, leveraging the expertise in investment from the parent company, Crestline Investors, Inc.

CL Life does not yet have an established or projected position in the market, with a high degree of competition currently in the annuity market hampering the execution of its business plan.

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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

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 more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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