Sammons Financial Group receives AM Best a- rating on $750 million senior notes
Sammons Financial Group is adding long-term debt financing as it supports growth across its insurance operations. The new $750 million notes mature in June 2036 and carry a stable outlook from AM Best.
Highlights
- Sammons Financial Group's $750 million 5.95% senior unsecured notes due June 2036 received an 'a-' Long-Term Issue Credit Rating with a stable outlook from AM Best.
- Proceeds from the notes will be used for general corporate purposes, supporting business growth at Midland National Life Insurance Company and North American Company for Life and Health Insurance.
- SFG's adjusted financial leverage will increase to approximately 22.5% by the end of 2025, but interest coverage and liquidity remain adequate, preserving financial flexibility.
Debt rating and funding purpose
As reported by AM Best, the ratings agency assigns a Long-Term Issue Credit Rating of "a-" to Sammons Financial Group's $750 million 5.95% senior unsecured notes due June 2036. The outlook on the rating is stable.The proceeds are set to be used for general corporate purposes, including business growth at SFG's two insurance operating subsidiaries, Midland National Life Insurance Company and North American Company for Life and Health Insurance.
Leverage and liquidity position
AM Best says SFG's adjusted financial leverage rises to about 22.5% from 18.6% at the end of 2025 as a result of the issuance. Even with the additional debt, interest coverage is expected to remain favorable and is considered adequate.The agency also says SFG maintains sufficient liquidity to service its debt and has a well-laddered debt maturity structure. That combination indicates the group retains financial flexibility while extending funding for its insurance business.
Our earlier coverage of Fitch’s ratings on Small Business Origination Loan Trust 2026-1 DAC examined a securitisation backed by a static pool of mostly unsecured UK SME loans originated via Funding Circle. We highlighted the agency’s view on portfolio risk (including default and recovery assumptions) and the deal’s structural features, notably the pro rata amortisation period that can increase sensitivity until a sequential-pay trigger is breached.
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