Knighthead Annuity’s Financial Strength Ratings Affirmed at A- with Stable Outlook

Knighthead Annuity & Life Assurance Company (Knighthead Annuity) recently announced the outcomes of the annual ratings review process completed with AM Best and Kroll Bond Rating Agency.

On 25 June 2020, Kroll Bond Rating Agency (KBRA) affirmed the A- insurance financial strength rating (IFSR) of Knighthead Annuity.

The outlook for the rating is “Stable.” KBRA noted that the rating reflected Knighthead Annuity’s sound capitalization, very strong enterprise risk management framework, and successful execution of its business strategy by a highly experienced management team.

The Kroll Bond Rating Agency (KBRA) insurance financial strength rating (IFSR) applies only to insurance operating companies. The IFSR is a measure of the overall financial condition of an insurance operating company with respect to its ability to meet its policyholder obligations.

The ratings assigned to insurance holding companies and their obligations are reflected on KBRA’s long-term credit scale.

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An A rated insurance company is defined by KBRA as follows: “The insurer’s financial condition is sound, and the entity is likely to meet its policyholder obligations under difficult economic, financial, and business conditions.”  The full rating report can be accessed at

Knighthead Annuity further reports that on 23 July 2020, AM Best affirmed the company’s Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of ‘a-‘.  The outlook of these ratings are “Stable.”

AM Best said the ratings reflect Knighthead Annuity’s strong balance sheet, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Founded in 1899, AM Best is the world’s first credit rating agency and is now the largest credit rating agency in the world specializing in the insurance industry.

Headquartered in the United States, the company does business in over 100 countries.

AM Best rating services assesses the creditworthiness of and/or reports on over 16,000 insurance companies worldwide.

AM Best credit ratings summarize their opinion on an insurance company’s ability to pay claims, debts and other financial obligations in a timely manner. AM Best assigns an A- Financial Strength Rating to insurance companies that, in their opinion, have “an excellent ability to meet their ongoing insurance obligations.” The full ratings report may be viewed at

Knighthead Annuity is a Cayman Islands-based direct issuer of fixed and fixed index annuity products and a reinsurer of similar products for US-based insurance companies.

Knighthead Annuity reports assets of $2.6 billion and total shareholder equity of $287 million as at 30 June 2020.  It is regulated by the Cayman Islands Monetary Authority and holds License #1130065.

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