AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of a+ (Excellent) for Everlake Life Insurance Company and Everlake Assurance Company. The two Northbrook, Illinois-based insurers operate collectively as Everlake Life Group, and the outlooks on all ratings remain stable.
The ratings reflect Everlake Life’s very strong balance sheet strength, strong operating performance, neutral business profile and appropriate enterprise risk management, according to AM Best.
Everlake Life is ultimately owned by Everlake Holdings, LP, based in the Cayman Islands. Blackstone Inc. is the ultimate parent of the general partner of the vehicle holding the interests in Everlake.
The group has continued expanding premiums and assets under management through several annuity flow reinsurance transactions. AM Best said those deals have increased the scale and diversity of Everlake Life’s operations.
Everlake Life’s risk-adjusted capitalization has remained in the strongest category under Best’s Capital Adequacy Ratio. The company manages its capital position in part through extensive use of affiliate and non-affiliate retrocession.
A large share of Everlake Life’s assumed reinsurance business has been retroceded to Everlake Reinsurance Ltd. and Herald Reinsurance Ltd., both domiciled in the Cayman Islands. Neither offshore reinsurer is directly included in the rated group.
AM Best also cited Blackstone’s capacity to raise capital, including its record of establishing and expanding reinsurance sidecar companies.
Blackstone provides investment management services to Everlake Life through agreements with Blackstone Credit and Insurance.
Everlake Life has increased its allocations to rated alternative assets, less-liquid private placement fixed-income securities and mortgage loans. AM Best said it will continue monitoring capitalization, investment performance, risk management and the broader enterprise risk management program as the group pursues its planned growth.
