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.

AM Best notes volatility on operating earnings due to changes in asset-liability valuations and some initial losses on longer-dated runoff liabilities, the performance of which has stabilized in recent years. Over the longer term, AM Best expects that Fortitude Re will demonstrate adequate returns on capital.

In its business profile assessment of Fortitude Re, AM Best recognizes that the group benefits from a quality management team that possesses significant experience in the open market as a runoff and reinsurance specialist. Fortitude has diversified its liabilities with the recent additions of several flow reinsurance agreements. AM Best will continue to monitor Fortitude Re’s progress as it executes transactions and materially adds to the group’s portfolio.

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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