KBRA Rates $350M Venerable Surplus Notes at BBB+ with Stable Outlook

Kroll Bond Rating Agency (KBRA) has assigned a BBB+ rating with a Stable Outlook to $175 million of 7.75% surplus notes due 2045 issued by both Venerable Insurance and Annuity Company (VIAC) and Corporate Solutions Life Reinsurance Company (CSLR). These insurance subsidiaries of Venerable Holdings hold an Insurance Financial Strength Rating of A with a Stable Outlook from KBRA.

The surplus notes are deeply subordinated debt instruments, with payments subject to approval by the Iowa Division of Insurance, and any unpaid principal accrues interest, though interest on unpaid interest does not accrue. The issuance is part of a broader transaction where Venerable reinsured variable annuity business from certain Corebridge Financial subsidiaries, a deal completed in August 2025. Venerable operates as a private company managing legacy variable annuity portfolios acquired from various sources and recently launched Venerable Investment Advisers, LLC, overseeing mutual funds linked to VIAC's variable annuity products. KBRA’s process and rating methodologies are documented and accessible for transparency, with full disclosures related to this rating action available on their website.

As a recognized Nationally Recognized Statistical Rating Organization (NRSRO), KBRA provides credit assessments influencing debt investors and insurance industry stakeholders regarding the creditworthiness of issuing entities. This rating and related surplus note issuance illustrate capital management strategies within life insurance and reinsurance entities focusing on variable annuity businesses, relevant for insurers, regulators, and financial analysts monitoring capital structure and regulatory compliance in the insurance sector.