AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb” (Good) to Revol One Insurance Company (Revol One Financial) (Spring Lake, MI, with administrative offices in Urbandale, IA). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Revol One Financial’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

Revol One Financial is a domestic life insurance carrier that was acquired by Axar Capital in 2022, with the intent to leverage the platform to build a life insurance franchise initially focused on annuity growth. The company has stabilized its run-off back book of business and is working to reenter the market to write annuity business in the current year including fixed indexed annuities and multi-year guarantee annuities. The ratings are driven by Revol One Financial’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to be maintained at the very strong level as the company begins to write new business. Capitalization is also expected to be supported by contributions from its parent structure including investment funds, as Revol One Financial executes on its growth plans. The investment portfolio is currently allocated to high quality assets with an average credit rating of A, but allocations are expected to shift as the profile of liabilities shifts with new business. In addition, the business plan is expected to incorporate significant use of reinsurance with top tier annuity reinsurance partners.

Revol One Financial has an experienced management team, each with over 20 years of industry experience at high-profile organizations. Operating performance (which only reflects the back book of business sold before the company changed ownership) has been profitable. While earnings over this period does not reflect the company’s new strategy, some volatility is expected going forward due to significant growth plans and concentration in the annuity business. AM Best will continue to monitor the company’s progress as it looks to execute on its new business plan.

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