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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 Removes From Under Review With Developing Implications and Downgrades Credit Ratings of Stellar National Life Insurance Company

AM Best has removed from under review with developing implications and 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 Stellar National Life Insurance Company (Stellar) (Phoenix, AZ). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Stellar’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.

These rating actions are due to Stellar’s trending decline in capital and surplus, through the second quarter of 2025, partially offset by a capital infusion from the parent company. The decline in capital and surplus is driven by losses related to startup costs and a delay in product sales. The company is planning to improve its capital position through strategic discussions as it is seeking new capital partners, which have been delayed from the original business plan. Additionally, operating performance has been pressured due to a business decision to delay sales while the company seeks external capital investment.

Stellar has focused on becoming a fully digital issuer of annuities, while partnering with U.S. independent annuity sales channels. Invested assets are managed by Stellar National IM, LLC (Stellar IM), an affiliate of Stellar’s parent company, Stellar National Holdings, LLC (Stellar Holdings). Stellar IM has a strategic investment relationship with Blue Vista Capital Management, LLC, an indirect owner of Stellar Holdings, which has a particular expertise in the commercial mortgage lending space and over $5 billion in assets under management. Partially offsetting factors include the increasing exposure to interest rate risk as Stellar’s annuity book of business grows, and the challenges that come with executing 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.

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

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