KBRA upgrades the insurance financial strength rating (IFSR) to A from A- on Knighthead Annuity & Life Assurance Company (Knighthead Annuity). KBRA also upgrades the debt rating to BBB+ from BBB on Knighthead Annuity’s $50 million prescribed capital notes (subordinate unsecured debt) due December 2042. The Outlook for both ratings is Stable. Knighthead Annuity provides fixed and fixed indexed annuities to an international client base, sold by regulated US and global financial institutions, and reinsures similar liabilities ceded by companies domiciled in the US. The company is domiciled in the Cayman Islands and holds a Class D reinsurer license from the Cayman Islands Monetary Authority.
The upgrades reflect Knighthead Annuity’s significant growth over the past five years as well as its nascent track record in raising both debt and equity capital. While the recent raises were relatively modest, KBRA believes that they demonstrate the company’s ability to access capital and will provide financial flexibility to the company as it executes its long-term growth strategy.