AM Best Places Credit Ratings of Gulf Guaranty Life Insurance Company Under Review With Negative Implications

OLDWICK, N.J.–(BUSINESS WIRE)–#insuranceAM Best has placed under review with negative implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Gulf Guaranty Life Insurance Company (Gulf Guaranty Life) (Flowood, MS).

This Credit Rating (rating) action reflects a significant deterioration of Gulf Guaranty Life’s capital and surplus and risk-adjusted capitalization at year-end 2021, driven by an operating loss. The decline in the company’s financial performance resulted from higher claim expenses in the fourth quarter of 2021 and a material increase to reserves primarily for claims in Gulf Guaranty Life’s core limited benefit medical business. The ratings will remain under review pending reserve development toward mid-2022 and potential measures management is implementing to curb premium growth. Given the small size of the company’s absolute capital and surplus, even modest fluctuations in capital and surplus and premium may materially impact risk-adjusted capitalization.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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Doniella Pliss

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Christopher Sharkey
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Brian Virostek
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