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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Downgrades Credit Ratings of Mountain Life Insurance Company

AM Best has downgraded the Financial Strength Rating to B (Fair) from B+ (Good) and the Long-Term Issuer Credit Rating to “bb” (Fair) from “bbb-” (Good) of Mountain Life Insurance Company (Mountain Life) (headquartered in Lexington, KY). The outlook of these Credit Ratings (ratings) is stable.

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

The ratings also reflect a change in the balance sheet strength assessment from strong to adequate characterized by the issuance of a $10 million unaffiliated surplus note, which has created concern over the organization's quality of capital. While absolute and risk-adjusted capital has increased substantially because of this issuance, financial leverage has also increased to very high levels. Due to the debt service associated with the surplus note, AM Best expects Mountain Life’s capital growth to be impacted going forward. The company is also dependent upon reinsurance, which includes a quota-share reinsurance agreement on its multi-year guaranteed annuity product. As of the second quarter of 2025, Mountain Life had an ACL RBC ratio of 1,263%. Additionally, their adjusted Capital and Surplus to liability ratio was 27% as of the end of the second quarter.

While the company’s operating performance is expected to improve due to the added reinsurance support, AM Best expects reinsurance leverage to increase as Mountain Life writes more business. AM Best will continue to monitor the company’s results, any associated impacts to the balance sheet strength and any ERM enhancements.

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.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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