AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Ratings (Long-Term ICRs) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICRs of “bbb” (Good) of Nassau Life Insurance Company, Nassau Life and Annuity Company and Nassau Life Insurance Company of Kansas (Overland Park, KS). The outlook of the FSR is stable. These companies are collectively referred to as the Nassau Insurance Group (Nassau). In addition, AM Best has revised the outlooks to positive from stable and affirmed the Long-Term ICR of “bb” (Fair) of The Nassau Companies of New York, Inc., along with the organization’s Long-Term Issue Credit Ratings (Long-Term IRs). (See below for a listing of the Long-Term IRs.) All companies are headquartered in Hartford, CT, unless otherwise specified.

The Credit Ratings (ratings) reflect Nassau’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.

The revision of the Long-Term ICR outlook to positive from stable reflects recent improvements in Nassau’s operating earnings, bolstered by favorable alternative investment income and mortality experience, as well as inorganic earnings from recent acquisitions. Nassau’s actuarial risks also have been well-managed and experience has been stable, with mortality experience in line with expectations. Sales momentum has been strong and is expected to contribute further to the group’s growing profitability. The positive Long-Term ICR outlook further recognizes AM Best’s expectation that the group’s operating performance will continue to benefit from management’s underwriting discipline and improvements in scale and business mix while maintaining an overall strong balance sheet strength assessment.

Nassau’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is targeted to remain at or above the very strong level and support the group’s strategy of growing its platform by providing digitally enabled financial services across insurance, reinsurance and asset management. Additionally, the ratings acknowledge recent capital contributions, including the strategic partnership with Fortress Investment Group on Sept. 1, 2023.

The following Long-Term IRs have been affirmed, with the outlook revised to positive from stable:

The Nassau Companies of New York, Inc.—

-- “bb” (Fair) on $300 million, 7.45% senior unsecured notes, due 2032

Nassau Life Insurance Company—

-- “bb+” (Fair) on $175 million, 7.15% surplus notes, due 2034

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.

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