AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of “aa+” (Superior) of Guardian Life Insurance Company of America (Guardian Life) (New York, NY) and its core subsidiaries, The Guardian Insurance & Annuity Company, Inc. (Wilmington, DE) and Berkshire Life Insurance Company of America (Pittsfield, MA) (together referred to as Guardian). Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) of “aa-” (Superior) of Guardian Life’s surplus notes, and the Long-Term IRs of “aa+” (Superior) of Guardian Life Global Funding’s medium-term notes, which are backed by funding agreements issued by Guardian Life. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the Long-Term IRs.)

The ratings reflect Guardian’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management.

The rating affirmations reflect a continuation of Guardian’s strongest level of risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR). Despite its mutual company structure, Guardian Life also has favorable financial flexibility with diverse sources of capital and liquidity, including Federal Home Loan Bank borrowings, a bank line of credit that has not been drawn, but is available if needed, reinsurance with generally well-rated counterparties, as well as access to capital markets through the surplus notes and funding agreements. Guardian utilizes external investment managers to provide further expertise in the management of a more diversified invested asset portfolio, which has supported strong investment income and overall operating earnings over the last five years.

Partially offsetting these positive rating factors is Guardian’s reinsurance leverage in its individual annuity line of business, although the group has taken actions to maintain more of the economics. This capital management strategy is anticipated to continue supporting Guardian’s strategic objectives, which include maintaining competitive dividend and crediting rates on its core participating whole life insurance and annuity businesses, respectively. Guardian’s strategic use of reinsurance partnerships has mitigated new business strain and has supported favorable growth in revenue; prudently managing capital while furthering its outreach into new strategic markets. While growing concentration in certain annuity reinsurers does present risks that AM Best will monitor, Guardian’s reinsurance exposure is more diversified when viewed across all product lines. Reinsurer counterparty risk is largely mitigated by comfort trusts, which are held onshore, under Guardian’s annuity coinsurance agreements. Guardian’s reinsurance commissions received on ceded business have increased steadily over the last five years, highlighting Guardian’s strategic use of reinsurance to grow its retirement solutions business, while maintaining its overall operating performance metrics and risk-adjusted capitalization. Guardian faces ongoing competition from mutual and stock companies in the highly competitive U.S. life/annuity market; however, the organization has expanded its well-diversified product portfolio in support of a strong distribution network.

The following Long-Term IRs have been assigned with stable outlooks:

Guardian Life Global Funding – “aa+” (Superior) program rating

-- “aa+” (Superior) on $500 million 1.25% medium-term notes, due 2027

-- “aa+” (Superior) on $400 million 5.737% medium-term notes, due 2028

-- “aa+” (Superior) on $700 million 4.798% medium- term notes, due 2030

The following Long-Term IRs have been affirmed with stable outlooks:

Guardian Life Insurance Company of America—

-- “aa-” (Superior) on $400 million 7.375% surplus notes, due 2039

-- “aa-” (Superior) on $450 million 4.875% surplus notes, due 2064

-- “aa-” (Superior) on $300 million 3.700% surplus notes, due 2070

-- “aa-” (Superior) on $350 million 4.850% surplus notes, due 2077

Guardian Life Global Funding – “aa+” (Superior) program rating

-- “aa+” (Superior) on all outstanding notes issued under the program

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 © 2025 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/20250912154168/en/