KBRA Affirms Ratings for Venerable Holdings and Subsidiaries

KBRA affirms the BBB issuer rating of Venerable Holdings, Inc., the BBB debt rating of Venerable's 6.257% subordinated term loan, the A insurance financial strength ratings of its subsidiaries, Venerable Insurance and Annuity Company (VIAC) and Corporate Solutions Life Reinsurance Company (CSLR), and the debt rating of BBB+ for VIAC's and CSLR's surplus notes. The Outlook for all ratings is Stable.

The ratings reflect Venerable's highly skilled management team that continues to successfully execute its strategy, strong risk management and hedging program track record, robust liquidity, and solid capitalization. Balancing these strengths are business concentration risk in the variable annuity sector, ongoing risks related to the company's growth through acquisition strategy, and high counterparty exposure.

Factors that could positively impact the rating include targeting and achieving a higher risk adjusted capitalization position, actual results materially exceeding management's expectations on a consistent basis, or sustained progress developing or maintaining less year-over-year volatility in annual projections. Factors that could negatively impact the rating include a change in risk profile, material reductions in excess liquidity or excess capital, actual results materially below management’s expectations on a consistent basis, an acquisition that has a significant negative impact on operations, the company's financial profile, or approach to risk management, or an erosion of market position. Also, the rating on the subordinated term loan could be lowered if more than a minimal amount of senior debt comes into the capital structure on a sustained basis, or if loan interest is paid via the electable PIK feature.

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