At a glance
- The long-term issuer credit ratings of Atlantic Coast Life Insurance Company, of Charleston, S.C., and Sentinel Security Life Insurance Company, of Salt Lake City, fell to "ccc-" from "b-".
- AM Best tied the downgrades to the termination of A-CAP Group's agreement with Oaktree Capital Management to inject capital into the insurers.
- For allocators holding or weighing A-CAP paper, the unresolved review means a further downgrade is possible if the replacement financing does not land.
AM Best lowered the financial strength ratings of two A-CAP Group life insurers to C- (Weak) from C+ (Marginal) on Nov. 11. The long-term issuer credit ratings of Atlantic Coast Life Insurance Company, of Charleston, S.C., and Sentinel Security Life Insurance Company, of Salt Lake City, fell to "ccc-" from "b-". Both ratings remain under review with negative implications, AM Best said.
AM Best tied the downgrades to the termination of A-CAP Group's agreement with Oaktree Capital Management to inject capital into the insurers. The agency revised its balance-sheet strength assessment to very weak from weak and its business profile assessment to very limited from limited. Operating performance and enterprise risk management are assessed as marginal.
For allocators holding or weighing A-CAP paper, the unresolved review means a further downgrade is possible if the replacement financing does not land. A-CAP Group is in discussions with another possible capital provider, according to AM Best. The amount, structure and seniority of any new capital are the central due-diligence questions.
The Nov. 11 action follows AM Best's Sept. 22, 2026 downgrades of the same ratings, which reflected increasing weakness in balance-sheet strength and operating performance during the first half of 2026. The earlier downgrade rested on deterioration in the existing book; this one followed the financing that did not close.
Reported by the Insurance regulation desk from AM Best News. Published . Corrections