Press Release - SEPTEMBER 13, 2019
AM Best Assigns Issue Credit Rating to The Northwestern Mutual Life Insurance Company’s New Surplus Notes
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 13, 2019
The proceeds from the offering will be used for general corporate purposes. The size of the issuance may increase as part of an exchange offering for its existing 6.063% surplus notes due 2040. The newly issued surplus notes, in addition to its existing surplus notes, will remain subordinate to policyholder liabilities and will require regulatory approval for payments.
As only approximately $600 million of the new issuance will be additive to financial leverage, interest coverage, and leverage ratios will not be impacted materially in AM Best’s view, and the pro forma adjusted financial leverage will remain within AM Best’s guidelines and methodology.
The underlying rating of Northwestern Mutual reflects its balance sheet strength, which AM Best categorizes as strongest, as well as its very strong operating performance, very favorable business profile and very strong enterprise risk management.
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 Understanding 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 rating agency and information provider with a unique focus on the insurance industry.