JANUARY 28, 2021 05:06 PM (EST)
AM Best Comments on Credit Ratings of Jackson National Life Insurance Company and Its Affiliates Following Demerger Announcement
Senior Financial Analyst
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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 28, 2021 05:06 PM (EST)
AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of Jackson National Life Insurance Company (JNL), its wholly owned subsidiary, Jackson National Life Insurance Company of New York, and its direct parent, Brooke Life Insurance Company (collectively referred to as the Jackson National Group [JNG]) remain unchanged following the recently announced plan for JNG to be separated from its Prudential plc (Prudential) parent via a second-quarter 2021 demerger. All companies are headquartered in Lansing, MI.
On Jan. 28, 2021, Prudential announced that it would pursue the separation of Jackson Financial, Inc. (Jackson), JNG’s U.S. holding company, from the group in the second quarter of 2021 through a demerger, whereby shares in Jackson would be distributed to Prudential shareholders. The demerger, which is subject to shareholder and regulatory approval, would lead to a significantly earlier separation of Jackson than would have been possible through a minority IPO and future sell-downs.
AM Best notes that targeted capitalization, financial leverage and other financial metrics for Jackson as a stand-alone company are largely in line with previous guidance, albeit somewhat accelerated relative to the previously envisioned minority IPO path. AM Best will continue to monitor the execution of the announced separation and related transactions in order to determine their longer-term impact on JNG’s ratings.
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.