Best’s News & Research Service - January 20, 2021 05:35 PM (EST)
AM Best Comments on Credit Ratings of Talcott Resolution Life, Inc. and Its Subsidiaries Following Acquisition Announcement
- January 20, 2021 05:35 PM (EST)
Oldwick //BestWire// - AM Best has commented that the Credit Ratings (ratings) of Talcott Resolution Life, Inc. (Delaware) and its insurance subsidiaries, Talcott Resolution Life Insurance Company (Windsor, CT) and Talcott Resolution Life and Annuity Insurance Company (Windsor, CT) (collectively known as Talcott Resolution), remain unchanged following the announcement that Sixth Street, a leading global investment firm with over $50 billion in assets under management and committed capital, has entered into a definitive agreement to acquire Talcott Resolution from a consortium of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group Limited, Pine Brook, J. Safra Group and The Hartford Financial Services Group, Inc. The Long-Term Issue Credit Ratings of Talcott Resolution Life, Inc. also remain unchanged. The outlook of these ratings remains stable.
Talcott Resolution currently oversees over $90 billion in liabilities and surplus primarily consisting of fixed annuities, variable annuities and company-owned and bank-owned life insurance for approximately 900,000 customers. AM Best believes that Talcott Resolution will remain well-capitalized and will maintain its current business strategy of growing its platform by providing risk-transfer solutions to the insurance industry through reinsurance or legal entity acquisitions. The transaction is expected to close in the second quarter of 2021, subject to regulatory approvals and other customary closing conditions.
Talcott Resolution’s variable annuity business continues to show performance in line with reserve assumptions, despite material impacts from interest rate- and equity market-related risks in recent periods. In addition, Talcott Resolution’s general account investment portfolio performed well over the past year with only a minimal amount of impairments and downward ratings migration as a result of the Covid-19 pandemic.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.