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FOR IMMEDIATE RELEASE
OLDWICK - JULY 22, 2021 01:03 PM (EDT)
AM Best has placed under review with positive implications the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of Prudential Retirement Insurance and Annuity Company (PRIAC), headquartered in Newark, NJ.
PRIAC’s Credit Ratings (ratings) were placed under review with positive implications following the announcement that Empower Retirement (legally known as Great-West Life & Annuity Insurance Company) and Prudential Financial, Inc. (Prudential) [NYSE: PRU] have entered into a definitive agreement for Empower Retirement to acquire Prudential’s full-service retirement business including PRIAC. Prudential’s full-service retirement recordkeeping business comprises more than 4,300 workplace savings plans, through which approximately four million plan participants have saved $314 billion in assets. It also includes more than 1,800 employees, retirement recordkeeping and administration services to financial professionals, plan sponsors and participants.
The positive implications reflect AM Best’s expectation that PRIAC will benefit from the financial strength of Empower Retirement’s ultimate parent, Great-West Lifeco Inc., as it becomes integrated into its existing retirement business. The transaction is expected to close during the first quarter of 2022.
The ratings will remain under review until the transaction closes, all customary regulatory approvals are received and AM Best evaluates PRIAC’s role in the Empower organization.
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 use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.