AM Best has revised the outlooks to negative from positive and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of the following subsidiaries of Group 1001 Insurance Holdings, LLC: Delaware Life Insurance Company and Clear Spring Life and Annuity Company (both domiciled in Wilmington, DE). These companies are referred to as the Group 1001 Life & Annuity Group. In addition, AM Best has revised the outlooks to negative from positive and affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Gainbridge Life Insurance Company (Gainbridge Life) (Wilmington, DE).

Concurrently, AM Best has revised the outlooks to negative from stable and affirmed the FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) of Clear Spring Casualty Insurance Company, Clear Spring National Insurance Company, Clear Spring Property and Casualty Company and Clear Spring American Insurance Company, which are referred to as the Group 1001 Property and Casualty Group (Zionsville, IN).

The ratings of the Group 1001 Life & Annuity Group reflect its balance sheet strength, which AM Best assesses as adequate, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The revision of the outlook to negative from positive is a result of the recent reclassification of a material portion of the group’s private credit investments from unaffiliated to affiliated assets. As a result of the reclassification, Delaware Life Insurance Company’s affiliated investments changed to 42% from 3% at year-end 2025. The reclassification resulted in a material decrease in the year-end 2025 risk-adjusted capitalization level for the group, as measured by Best’s Capital Adequacy Ratio (BCAR). While the group has noted a remediation plan for restructuring the subject assets, there is execution risk in doing so. AM Best also has concerns over the group’s ERM due to internal control weaknesses in financial reporting related to the affiliated investment reclassification. Also noted is the recent investigation by the U.S. Attorney Office for the Southern District of New York and the U.S. Securities and Exchange Commission focusing on a review of affiliated and related party disclosures.

The ratings of Gainbridge Life reflect the company’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile, and appropriate ERM. The company offers various annuity products on a digital direct-to-consumer platform that includes multiyear guaranteed and fixed indexed annuities. Gainbridge Life has maintained favorable risk-adjusted capitalization over recent years with capital contributions from its parent, allowing for premium growth over its limited operating history.

The ratings of the Group 1001 Property and Casualty Group reflect its balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and appropriate ERM. The revision of the outlook to negative from stable is a result of unfavorable reserve development in the group’s workers’ compensation business within California, which has led to a deterioration in the group’s risk-adjusted capitalization. This decline is partially offset by capital contributions and a capital maintenance agreement from the parent organization.

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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