AM Best Updates Credit Ratings for CL Life and Annuity Insurance Company
AM Best has updated the Credit Ratings of CL Life and Annuity Insurance Company, maintaining a stable outlook. The company's Financial Strength Rating is affirmed at B++ (Good) with the Long-Term Issuer Credit Rating remaining at “bbb+” (Good).
These ratings reflect CL Life’s robust balance sheet strength, rated as strong by AM Best, along with its adequate operating performance. The insurance company is recognized for its neutral business profile and effective enterprise risk management practices.
The removal of the under review status follows Rithm Capital Corp.'s acquisition of CL Life and its parent company, Crestline Management, L.P. This transaction, effective December 1, 2025, is set to enhance Rithm's asset management strategies, focusing on direct lending and insurance/reinsurance. Senior management at Crestline is expected to continue post-acquisition, with CL Life poised for strategic growth in the annuity market through premium and surplus expansion.
CL Life’s balance sheet strength is supported by anticipated high risk-adjusted capitalization at the end of 2025, as per Best’s Capital Adequacy Ratio (BCAR). Future business growth will depend on the company’s regulatory capital objectives, bolstered by new capital investments from its parent company. Investment is likely to prioritize corporate credit of investment-grade and first lien real estate mortgages, which carry higher risk than industry standards.
Profits for CL Life primarily come from net investment income and ceding commissions. Despite projections of modest operational earnings by 2025's close, the company will focus on offering multi-year guarantee annuities and fixed index annuity products through selected distributors. Much of its activities will be reinsured through a well-capitalized offshore entity in the Cayman Islands. The company aims to enhance its enterprise risk management with a focus on governance improvements and risk analytics.
This update comes from AM Best's recent announcement on its Credit Ratings, which can be accessed via their website. AM Best provides global credit ratings, data analytics, and insurance sector news, with headquarters in the United States and additional offices in major cities worldwide. For more information, visit AM Best’s website.