Fidelity & Guaranty Life Insurance Company's AM Best Ratings Maintained

AM Best has maintained the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” (Excellent) for Fidelity & Guaranty Life Insurance Company, based in Des Moines, IA, and Fidelity & Guaranty Life Insurance Company of New York. These companies are part of the Fidelity & Guaranty Life Group (FGL) under Fidelity & Guaranty Life Holdings, Inc. (FGLH), headquartered in Delaware. The Long-Term Issuer Credit Rating for FGLH remains at “bbb” (Good), with a stable outlook for all ratings.

The ratings are attributed to FGL’s robust balance sheet, showing strong risk-adjusted capital based on Best’s Capital Adequacy Ratio (BCAR). This is coupled with substantial liquidity supported by effective cash flows and solid protection on its existing annuity bloc. FGLH benefits from the financial flexibility provided through F&G Annuities and Life, Inc., and the commitment of its majority stakeholder, Fidelity National Financial, Inc., which owns 70% of FGL.

FGL's use of reinsurance, captive solutions, and surplus notes has raised its leverage, though the use of highly rated reinsurers helps offset counterparty risks. The firm’s investment portfolio comprises a significant share of private credit and mortgage-related assets, but these are mitigated by Blackstone’s expertise and historically low impairment rates.

The strategic pivot towards a fee-based business model has been evident in the group's evolving business profile. FGL holds a strong position in the fixed-indexed annuity market through independent agents while expanding into regional banks and broker-dealer channels. The firm’s footprint in institutional markets with solutions like pension risk transfer is growing, alongside its indexed universal life insurance offerings.

While statutory net operating results have experienced some fluctuation due to reinsurance and one-time events, FGL continues to see growth in premiums and investment income. AM Best anticipates stabilized financial outcomes in the near to medium term, driven by economies of scale and maintaining interest spreads in its annuity business. FGL's enterprise risk management (ERM) system is effectively aligned with its risk profile, ensuring the framework supports its strategic directions while mitigating operational volatility.

Details on the credit ratings and related disclosures can be found on AM Best’s website, alongside guides on the usage of their credit ratings and performance assessments. AM Best, with a global presence across multiple regional offices, is a renowned agency providing credit ratings and insights within the insurance sector.