AM Best Assigns Credit Ratings to Ability Insurance Company

Key Terms

financial strength rating regulatory

A financial strength rating is an assessment of an organization's overall financial health, indicating how well it can meet its financial commitments. Think of it as a report card that shows whether a company or institution is financially stable and capable of withstanding economic challenges. This rating helps investors gauge the level of risk involved in engaging with or investing in that organization.

long-term issuer credit rating regulatory

A long-term issuer credit rating is an independent assessment of an organization’s ability to repay its debts over several years, like a report card that summarizes how likely it is to meet loan and bond obligations beyond the short term. Investors use it to judge risk and expected returns: higher ratings usually mean lower borrowing costs and safer bond investments, while lower ratings signal greater default risk, similar to choosing whether to lend money to a careful neighbor or a risky one.

best’s capital adequacy ratio financial

A.M. Best’s Capital Adequacy Ratio (BCAR) is a proprietary measure that compares an insurance company’s available financial cushion with the risks on its books, like checking how much emergency savings a household has relative to its monthly bills. Investors watch it because a higher ratio indicates the insurer is better positioned to absorb unexpected losses, which supports stronger credit assessments and lowers the chance of capital shortfalls affecting returns.

enterprise risk management technical

Enterprise Risk Management is a process companies use to identify, assess, and prepare for potential problems that could disrupt their success, like financial losses or reputation damage. It’s like a safety plan that helps a business stay strong and adapt quickly when unexpected challenges come up. This helps the company protect its future and keep running smoothly.

reinsurance financial

Reinsurance is when insurance companies buy insurance for themselves to protect against very big losses. It’s like a car owner getting extra coverage from another company so that if there's a serious accident, the financial hit isn’t all on one company. This helps insurance companies stay stable and able to pay out when disasters happen.

structured fixed income financial

A category of debt investments created by combining bonds, loans or other cash flows with financial engineering such as derivatives or credit tranching to produce customized payoff patterns. Think of it like a layered cake where each slice offers a different mix of yield, credit risk and payment timing; some slices get paid first while others absorb losses. Investors care because these structures change expected income, credit exposure and liquidity compared with plain bonds, so pricing, transparency and structural details determine risk and return.

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OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has assigned a Financial Strength Rating of B+ (Good) and a Long-Term Issuer Credit Rating of “bbb-” (Good) to Ability Insurance Company (AIC) (Lincoln, NE). The outlook assigned to these Credit Ratings (ratings) is stable.

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

AIC’s balance sheet strength assessment is underpinned by its risk-adjusted capitalization at the strong level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s balance sheet strength assessment is supported by recent growth in surplus and future capital contributions from its parent to fund expected growth, as well as its position of structured fixed income to enhance yield and its reinsurance of its run-off long-term care (LTC) blocks.

AM Best will monitor AIC’s operating performance against its projections as the company begins to execute its annuity-based growth strategy.

AIC is a life/annuity (re)insurer that is owned by Mount Logan Capital Inc. (Nasdaq: MLCI). AIC is launching a strategy of direct writing of annuity products after previously focusing on annuity reinsurance and running off blocks of LTC insurance. The company’s business profile is limited given the startup nature of the growth plans and expansion into the individual annuity market, which remains an active segment within the broader life and annuity industry. AM Best views AIC’s ERM practices as appropriate for the scale and scope of its current operations.

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.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260723149009/en/

Stephen Vincent
Associate Director
+1 908 882 1705
stephen.vincent@ambest.com

Erik Miller
Senior Director
+1 908 882 2120
erik.miller@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

Source: A.M. Best Rating Services, Inc.