American subsidiaries of a Bermudian-based insurer have retained excellent credit ratings from AM Best.

Best has affirmed the financial strength rating of A (Excellent) and long-term issuer credit ratings of “a+” (Excellent) for the US life and health subsidiaries of Aegon Ltd, citing very strong balance sheet fundamentals and stable operating performance.

The ratings apply to Transamerica Life Insurance Company and TransAmerica Financial Life Insurance Company, collectively referred to as Aegon USA Group. The outlook for the ratings remains stable.

AM Best said the ratings reflect Aegon USA’s “very strong” balance sheet strength, underpinned by strong to very strong risk-adjusted capitalisation as measured by Best’s Capital Adequacy Ratio.

The group also benefits from additional liquidity through its membership in the Federal Home Loan Bank system and access to capital markets, providing what the agency described as substantial financial flexibility.

While Aegon USA’s investment portfolio allocation is broadly consistent with the US life insurance sector, AM Best noted continued exposure to higher-risk assets, though those allocations have declined in recent years.

The insurer also maintains some sensitivity to interest rate movements and relies significantly on reinsurance to manage liabilities.

Aegon Ltd announced plans to relocate to the US its head office from the Netherlands and legal seat from Bermuda, a transition it aims to complete by 2028.

Following the completion of the re-domiciliation process, Aegon Ltd., will be renamed TransAmerica Inc., and plans to prioritise resources towards building a leading US life insurance and retirement company.

Aegon USA has had a long-term strategy towards building a less capital-intensive book of business, driven by targeted growth and strategic exits and buyouts in certain lines, as well as competitive market positions across an array of product lines.