AM Best Assigns Credit Rating to Wellabe Subsidiary
The rating firm issued a BBB grade to $95 million in surplus notes from American Republic Insurance Company.
Updated on Oct. 15, 2026 in Healthcare
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AM Best has assigned a Long-Term Issue Credit Rating of bbb to surplus notes issued by the American Republic Insurance Company in Des Moines. The notes, which total $95 million, carry an interest rate of 8.25%.
Why it matters
The insurance firm intends to use the proceeds from the note issuance for general corporate purposes, including capital management and the support of new business growth.
The surplus notes reach maturity in 2041 and carry an 8.25% interest rate. AM Best assessed the issuance based on the insurer's corporate capitalization and capital adequacy metrics.
The players
American Republic Insurance Company
Based in Des Moines, this entity functions as the lead insurance subsidiary of Wellabe Inc.
AM Best
This global credit rating agency specializes in the insurance industry and evaluates the financial strength of insurance providers.
Wellabe Inc.
This parent organization manages a portfolio of insurance companies and provides a range of financial products.
The details
American Republic Insurance Company is the primary insurance subsidiary of Wellabe Inc. While financial leverage at Wellabe is anticipated to remain below 20%, AM Best notes that operating results face potential strain until the newly issued business matures.
Timeline
The surplus notes are scheduled to reach maturity in 2041.
Market Landscape
This debt issuance reflects a broader trend of insurers utilizing surplus notes to bolster capital reserves while navigating growth phases. The move positions the subsidiary within a competitive landscape where capitalization levels are primary indicators of long-term stability.
The credit rating decision serves as a signal of financial stability for existing policyholders and stakeholders of the insurance firm. Customers can expect the company to continue its standard operations while management pursues planned business growth.
The takeaway
Companies often issue debt to manage capital and fuel expansion projects in competitive insurance markets. Investors should monitor how effectively these funds translate into profitable growth as the business matures.
Further reading
For more information on the industry, visit the Healthcare section.
Source note: This article includes information reported by Ambest.
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