AM Best Assigns Credit Ratings to CL Life and Annuity Insurance Company

OLDWICK, NJ, September 15, 2022–(BUSINESS WIRE)–AM Best has assigned a Financial Strength Rating (FSR) of B++ (Good) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” (Good) to CL Life and Annuity Insurance Company (CL Life) (Fort Worth, TX). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect CL Life’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

CL Life, which was launched in August 2022, initially has been capitalized with approximately $10 million, and is projected to have the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), with a low level of initial business and high reinsurance leverage in the first couple of years of operations. The company anticipates receiving additional funding to support the projected annuity business growth. CL Life expects its projected new business growth to be measured, ensuring that capital remains at targeted levels while maintaining adequate liquidity under their established asset-liability management framework. The company’s investment portfolio is expected to focus on investment-grade private corporate credit, as well as first-lien real estate mortgages, with an allocation higher than the industry average, relying on the investment expertise of the parent company, Crestline Investors, Inc.

CL Life does not have any established or projected market position as of yet, with a high degree of competition currently in the annuity marketplace as a headwind toward execution of its business plan.

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 permanent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see

Read the rest

Washington judge overturns insurance rate credit scoring ban

A judge on Friday overturned a Washington state rule prohibiting insurers from using credit scoring to set rates for auto, homeowner and renter insurance.

Insurance Commissioner Mike Kreidler adopted the rule in February, immediately drawing a legal challenge from insurer groups. The rule, which was set to take effect March 4, was paused while the legal proceedings continued.

In her oral ruling invalidating the rule, Thurston County Superior Court Judge Indu Thomas said that Kreidler exceeded his statutory authority, according to Kreidler’s office. Kreidler spokeswoman Stephanie Marquis said in an email that a written ruling from the court wasn’t expected until next week.

“We will consult with our assistant attorney general on next steps and whether to appeal the decision,” Marquis wrote.

Earlier this year, Kreidler’s office started the process of implementing the permanent rule after an emergency rule the commissioner issued last year was struck down by a court, which found there was no justification to bypass normal rulemaking procedures.

Kreidler had argued that people who have struggled financially during the pandemic are at risk of having delinquencies show up on their credit reports, and has said that insurers charge good drivers with low credit scores nearly 80% more for mandatory auto insurance.

Republicans, insurers and others decried the move at the time, saying that it would add costs to people on fixed incomes, like the elderly, who have benefited from reduced insurance rates because of their good credit scores.

“Today’s decision is a win for Washington consumers, especially seniors, who will be able to continue paying lower insurance rates that more accurately reflect their risk,” Erin Collins, senior vice president of state and policy affairs for the National Association of Mutual Insurance Companies , said in a statement.

In a statement, Kreidler said that while

Read the rest