Best's News


Best’s News & Research Service - October 28, 2020 10:20 AM (EDT)

AM Best Affirms Issue Credit Rating of Northwind Holdings, LLC

  • October 28, 2020 10:20 AM (EDT)
    print icon

Oldwick //BestWire// - AM Best has affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “a” on the $800 million Floating Rate Insured Notes due 2037 (notes) issued by Northwind Holdings, LLC (Northwind Holdings), a Delaware limited liability company and wholly owned subsidiary of Unum Group (Unum). The outlook of the Long-Term IR is stable.

Northwind Holdings was formed for the limited purpose of holding the stock of Northwind Reinsurance Company (Northwind Re), issuing the notes and engaging in activities incidental to its duties. Northwind Holdings is the sole shareholder of Northwind Re, a special purpose financial captive insurance company domiciled in Vermont. Northwind Re was established to provide reinsurance coverage to three of Unum’s subsidiaries, Provident Life and Accident Insurance Company, The Paul Revere Life Insurance Company and Unum Life Insurance Company of America, as well as to facilitate the funding of a portion of the capital required to support a closed block of individual disability income policies.

The Long-Term IR affirmation takes into consideration the amount held in the debt service coverage account for the remaining interest and principal payments; the adequacy of cash flows from Northwind Re available to be transferred as dividends to Northwind Holdings to service the notes; and Unum’s operating subsidiaries’ current Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Ratings of “a”.

AM Best did not consider the payment assurance or support provided by MBIA Insurance Corporation, the financial guarantor, which ensures the timely payment of scheduled interest and the repayment of principal at maturity to the noteholders.

Northwind Holdings’ Long-Term IR and outlook may come under negative pressure if any of the following events occur: cash flows to service the note obligations become insufficient; the Credit Rating of Unum Group deteriorates; or the coverage ratio of the reserves and surplus to policy benefits deteriorates. However, the Long-Term IR and its outlook could benefit if a favorable trend occurs in the aforementioned categories.

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.



Delaware Insurance-Linked Securities United States Financial Strength Press Release Insurance Issue Credit Rating Issuer Credit Rating Best's Credit Rating Action


Latest News

More from Best’s News


Trending

AM Best TV

More Related Company News

To Submit News go to - https://www.ambest.com/bestweek/submitnews.html