Rating Agencies Affirm Knighthead Annuity's Financial Strength Ratings at A- With Stable Outlook

Knighthead Annuity & Life Assurance Company ("Knighthead Annuity") recently announced the outcomes of its annual ratings review process completed with AM Best Company ("AM Best") and Kroll Bond Rating Agency, LLC ("KBRA").  

On June 24, 2020, KBRA affirmed the A- insurance financial strength rating ("IFSR") of Knighthead Annuity. The Outlook for the rating is "Stable". KBRA noted that the rating reflected Knighthead Annuity's sound capitalization, comprehensive enterprise risk management framework, and successful execution of its business strategy by a highly experienced management team. The report noted that Knighthead Annuity continues to adjust its investment strategy and to increase overall diversification, improve average credit quality and mitigate earnings volatility.

KBRA's insurance financial strength rating applies only to insurance operating companies and is a measure of the overall financial condition of an insurance operating company with respect to its ability to meet its policyholder obligations.  An A-rated insurance company is defined by KBRA as follows: "The insurer's financial condition is sound and the entity is likely to meet its policyholder obligations under difficult economic, financial and business conditions." Knighthead Annuity's full KBRA rating report can be accessed by visiting www.kbra.com.

Knighthead Annuity further reports that on Aug. 12, 2021, AM Best affirmed the company's Financial Strength Rating of A- (Excellent) and the Issuer Credit Rating of a- (Excellent). The outlook assigned to both ratings is "Stable." AM Best reported the ratings reflect Knighthead Annuity's strong balance sheet as well as its adequate operating performance, neutral business profile and well-defined enterprise risk management program.

Founded in 1899, AM Best is the world's first credit rating agency and is now the largest credit rating agency in the world specializing in the insurance industry. AM Best rating services assess the creditworthiness of and/or reports on over 16,000 insurance companies worldwide. AM Best credit ratings summarize their opinion on an insurance company's ability to pay claims, debts and other financial obligations in a timely manner. AM Best assigns an A- Financial Strength Rating to insurance companies that, in their opinion, have "an excellent ability to meet their ongoing insurance obligations." The Company's full ratings report may be viewed at www.ambest.com.

Knighthead Annuity's CEO, Gary Dombowsky, stated, "Our company continues to perform at a high level and our strong balance sheet and earnings are reflected in the A- ratings assigned our firm. Since inception, we have engaged highly respected rating agencies to provide our stakeholders an independent and comprehensive assessment of our financial strength. We encourage all our counterparties to review these important reports."

Knighthead Annuity is a Cayman Islands-based direct issuer of fixed and fixed index annuity products and a reinsurer of similar products for U.S.-based insurance companies. Knighthead Annuity reports assets of $3.1 billion and total shareholder equity of $381 million as at June 30, 2020. Mid-year results are unaudited. The company is regulated by the Cayman Islands Monetary Authority.

Source: Knighthead Annuity & Life Assurance Company


Categories: Corporate Communications

Tags: A-, AM Best, Annuity, Financial Strength, KBRA, Knighthead Annuity & Life Assurance Company, Rating

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