A.M. Best Assigns Issuer Credit Rating to Global Atlantic Financial Group

  A.M. Best Assigns Issuer Credit Rating to Global Atlantic Financial Group

Business Wire

OLDWICK, N.J. -- October 25, 2013

A.M. Best Co. has assigned an issuer credit rating (ICR) of “bbb-” to Global
Atlantic Financial Group (Global Atlantic) (headquartered in Bermuda). The
outlook assigned is stable. The financial strength rating of A- (Excellent)
and the ICRs of “a-” of the insurance operating entities of Global Atlantic
are unchanged.

Global Atlantic is a financial services holding company seeking to acquire and
grow businesses in the insurance and reinsurance marketplace. The company has
a shareholder base of over 1,000 investors including The Goldman Sachs Group,
Inc. Leveraging its strong risk and investment management expertise, Global
Atlantic provides innovative solutions to its client franchise. Global
Atlantic currently operates in the life and annuity and property/casualty
segments.

Global Atlantic’s ICR reflects its recent acquisition of AVIVA plc’s (AVIVA)
U.S. life insurance business from Athene Holding Ltd. and the recent
announcement that Global Atlantic has entered into a definitive agreement to
acquire Forethought Financial Group, Inc. (FFGI) (Delaware) and its key
subsidiary, Forethought Life Insurance Company (Indianapolis, IN). Both
acquisitions will provide Global Atlantic with new sources of earnings
diversification as well as enhance its product lines and distribution
channels.

Global Atlantic will remain challenged with respect to integrating and
branding these large transactions. Additional offsetting rating factors
include the company’s elevated, although declining, exposure to structured
securities within its fixed income portfolio and the challenges relating to
the continued low interest rate environment. Furthermore, Global Atlantic’s
business plan is fairly new and remains untested.

A.M. Best believes Global Atlantic will remain well positioned at its current
rating level. Negative rating actions could occur if the company’s
capitalization, operating performance or both fall markedly short of A.M.
Best's expectations. Negative rating actions also could occur should there be
earnings pressure or a failure to successfully integrate current and future
acquisitions.

The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Best’s Credit Rating Methodology can be found at
www.ambest.com/ratings/methodology.

A.M. Best Company is the world's oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.

       Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contact:

A.M. Best Co.
Edward Kohlberg, 908-439-2200, ext. 5664
Senior Financial Analyst
edward.kohlberg@ambest.com
or
William Pargeans, 908-439-2200, ext. 5359
Assistant Vice President
william.pargeans@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com
 
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