AM Best Assigns Credit Ratings to Stellar National Life Insurance Company

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 Stellar National Life Insurance Company (Stellar Life) (Phoenix, AZ). The outlook assigned to these Credit Ratings (ratings) is stable.

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

The ratings assigned to Stellar Life reflect AM Best’s expectation that the company will maintain sufficient capital to support its future business plans. In December 2022, Stellar Life was launched, with a focus on becoming a fully digital issuer of annuities, while partnering with U.S. independent annuity sales channels.

The company intends to offer a mix of mainstream and niche fixed annuity products designed for banking, credit union and broker-dealer distribution through its platform, as well as partnering with other direct issuance private credit experts. Invested assets will be managed by Stellar National IM, LLC (Stellar IM), an affiliate of Stellar Life’s parent company, Stellar National Holdings, LLC (Stellar Holdings). Stellar IM will have a strategic investment relationship with Blue Vista Capital Management, LLC, an indirect owner of Stellar Holdings, which has a particular expertise in the commercial mortgage lending space and over $5 billion in assets under management. Partially offsetting factors include the increasing exposure to interest rate risk as Stellar Life’s annuity book of business grows, as well as the challenges that come with executing 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 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 www.ambest.com.

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