AM Best Revises Outlooks to Stable From Negative and Affirms Credit Ratings of FGH Parent, LP Members
AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” (Excellent) of Fortitude Reinsurance Company Ltd., Fortitude Life Insurance & Annuity Company (Phoenix, AZ) and Fortitude International Reinsurance Ltd, which are the members of FGH Parent, LP, and collectively referred to as Fortitude Re. All companies are domiciled in Pembroke, Bermuda, unless otherwise noted.
The Credit Ratings (ratings) reflect Fortitude Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The very strong balance sheet strength assessment considers Fortitude Re’s risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and AM Best’s expectation that Fortitude Re will maintain similar levels of capital strength consistently as the company executes transactions. AM Best believes that Fortitude Re possesses sufficient financial flexibility to source additional capital if needed to support its underwriting operations. The overall balance sheet assessment of very strong also recognizes Fortitude Re’s long-dated investment portfolio, which includes allocations to private and alternative investments. The company has a significant amount of long-term liabilities, although it recently has diversified its business and sourced new deals, particularly in Asia. The reinsurance transaction with Unum Insurance Group, announced in July 2026 and expected to close later this year, is expected to have a short-term negative impact on excess liquidity and regulatory capital at its Bermuda entities, but over the longer term should be accretive to earnings.
