Kroll Bond Rating Agency Reaffirms Ratings for Kuvare Group
Kroll Bond Rating Agency Maintains Ratings for Kuvare Group Companies
February 11, 2026 | New York
Kroll Bond Rating Agency (KBRA) has announced affirmations for the insurance financial strength ratings of multiple entities within the Kuvare group. Specifically, the A- IFSRs for Guaranty Income Life Insurance Company, Kuvare Life Re Ltd., and United Life Insurance Company have been reaffirmed, each carrying a stable outlook. The BBB+ rating for Lincoln Benefit Life Company was also maintained, now with a negative outlook.
Affirmations and Outlooks
Additionally, KBRA confirmed the BBB- issuer ratings for both Kuvare UK Holdings Limited and Kuvare US Holdings, Inc., coupled with a stable outlook. The $225 million Fixed Rate Reset Cumulative Preferred Stock due 2051 issued by Kuvare US Holdings, Inc. retains its BB debt rating with a stable outlook.
Capital Management and Risk Strategies
Kuvare's ratings are underpinned by effective capital management, robust financial contingencies, and strategic enterprise risk management (ERM) development. The firm demonstrates fiscal flexibility through a mix of earnings, reinsurance structures, and liquidity options to align with operational and strategic needs. Efficient liquidity management is emphasized, critical for an organization involved heavily in spread-based annuities and asset-reliant reinsurance activities. Liquidity strategies appear well supported by stress testing for potential market upheavals affecting policyholder actions and market stability.
Strategic Growth and Challenges
Kuvare's strategic approach targets growth in spread-based retail annuities, expansion in asset-intensive reinsurance with disciplined investment, and refinement of legacy business blocks. Capital levels meet internal target benchmarks, indicating adequacy relative to assigned ratings. The company's business model, however, displays certain vulnerabilities related to high operational leverage, existing legacy exposures that could limit growth, and a considerable reliance on reinsurance contracts.
Operational Risks and Market Pressures
Challenges are present due to the complex operational leverage and the constraints posed by past legacy exposures. There exists a dependency on maintaining favorable conditions within reinsurance treaties and market circumstances. The competitive landscape in annuity and reinsurance markets can place downward pressure on pricing and necessitate stringent asset and risk management to protect against adverse financial outcomes.
Potential Impact on Future Ratings
According to KBRA, durability in reducing volatility from legacy issues, constant improvement in capitalization metrics through stable earnings, and evidence of controlled liquidity risk could favorably affect future ratings. Conversely, deteriorating capital or liquidity conditions, governance challenges, or increased financial leverage could lead to negative rating revisions.
For a detailed overview of KBRA’s ratings, methodologies, and key analyses, interested parties can access the necessary documentation and disclosures through the agency's official channels.
[Comprehensive supporting documentation and methodologies are available through official KBRA resources.]