AM Best has upgraded the long-term issuer credit ratings of Global Atlantic Group from to “a+” from “a”, and affirmed the financial strength rating of A.

The Global Atlantic Group refers collectively to Global Atlantic Re and Global Atlantic Assurance.

The outlook of the long-term ICRs has been revised to stable from positive, while the outlook of the FSR is stable.

AM Best also has upgraded Global Atlantic Financial Group Limited’s long-term ICR to “bbb+” from “bbb”. The outlook of the long-term ICR has been revised to stable from positive.

The credit ratings reflect Global Atlantic’s balance sheet strength, which AM Best assessed as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

AM Best said the upgrade of the long-term ICRs represents Global Atlantic’s continued improvement in its balance sheet strength, the ability to grow reinsurance premium supported by matching funding capabilities and strong levels of risk-based capital.

AM Best considers the group’s risk-adjusted capitalisation, as measured by AM Best’s capital adequacy ratio, to be very strong. The higher risk asset allocation held by the group, compared with the broader industry, is supported by the provided capital on a risk-adjusted basis.

The ratings firm said Global Atlantic’s profitability continues to be positive and supportive of its ratings as previous risk-reduction strategies have enabled the group to execute on its existing growth objectives. The group’s ERM is in line with the scope of operations and supports an appropriate asset liability matching programme at the present time.