AM Best Removes From Under Review With Developing Implications and Upgrades Credit Ratings of Mountain Life Insurance Company

AM Best has removed from under review with developing implications and upgraded the Financial Strength Rating to B+ (Good) from B (Fair) and the Long-Term Issuer Credit Rating to “bbb-” (Good) from “bb+” (Fair) of Mountain Life Insurance Company (Mountain Life) (Lexington, KY). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Mountain Life’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.

Mountain Life’s rating upgrades reflect a stronger business profile, which should continue to improve as the company executes its business plan. Geographic exposure is expected to diversify over the next two years as the company applies for licenses in most U.S. states. The product portfolio has been expanded to include multi-year guaranteed annuities (MYGA), though the product mix is expected to be concentrated in this product going forward. Distribution is also expected to improve, with an increasing agent count and strategic independent marketing organization relationships.

The rating upgrades also reflect Mountain Life’s stronger balance sheet. Capital contributions from the parent company, MEM Capital LLC, have bolstered risk-adjusted capital and improved liquidity metrics, which will be necessary to support the strong growth planned for the MYGA product. More capital is expected to be added to Mountain Life in the future to further support growth. Some volatility is expected going forward due to significant growth plans and Mountain Life’s concentration in the annuity business. AM Best will continue to monitor the company’s progress as it looks to execute on 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 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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