AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of American Life & Security Corp.

AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of American Life & Security Corp. (ALSC) (headquartered in Lincoln, NE). The outlook assigned to these Credit Ratings (ratings) is negative.

The ratings reflect ALSC’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The rating actions follow the completed acquisition of ALSC’s previous ultimate parent, Midwest Holding Inc. (Midwest), by an affiliate of Antarctica Capital (Antarctica) on Dec. 21, 2023. This transaction was supported by the infusion of capital in the form of surplus notes and a ceding commission resulting from the completion of an affiliated reinsurance transaction.

ALSC’s balance sheet strength assessment of adequate at the close of the transaction is supported by its consolidated risk-adjusted capitalization, which is projected to be at the adequate level, as measured by Best’s Capital Adequacy Ratio (BCAR).

The negative outlooks reflect the ongoing pressure on ALSC’s overall capitalization, which is driven by the strain to the balance sheet from growth in retained levels of annuity premium and concerns regarding the execution of its business strategy.

Midwest is a technology-driven life and annuity platform, while Antarctica is an alternative asset management firm. With the completion of the transaction, Midwest shares have ceased trading and will no longer be listed on the Nasdaq.

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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