Best’s News & Research Service - October 06, 2021 08:56 AM (EDT)
AM Best Affirms Credit Ratings of Jackson National Life Insurance Co. and Its Affiliates; Assigns ICR to Jackson Financial Inc.
- October 06, 2021 08:56 AM (EDT)
Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) of Jackson National Life Insurance Company (JNL), its wholly owned subsidiary, Jackson National Life Insurance Company of New York, and its direct parent, Brook Life Insurance Company. These companies together are referred to as Jackson National Group (JNG). Concurrently, AM Best has affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “a” (Excellent) on the notes issued under JNL’s funding agreement-backed securities program and affirmed the Long-Term IR of “bbb+” (Good) of JNL’s surplus notes. AM Best also has affirmed the Long-Term ICR of “a” (Excellent) of Jackson National Life Global Funding. The outlook of these (Credit Ratings) ratings is stable. In addition, AM Best has assigned a Long-Term ICR of “bbb” (Good) to Jackson Financial Inc. (Delaware). The outlook assigned to this rating is stable. All companies are domiciled in Lansing, MI, unless otherwise specified. (Please see below for a detailed listing of the Long-Term IRs)
The ratings reflect JNG’s balance sheet strength, which AM Best assesses as adequate, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
The ratings also reflect the completed de-merger from Prudential plc and the company’s newly rated parent, Jackson Financial Inc. JNL’s balance sheet will be supported by the new parent through direct capital injections from its recent issuance of debt before the end of 2021. The company expects to target a long-term adjusted RBC ratio of 500-525% during normal market conditions. AM Best expects earnings for the lead rating unit and parent company to remain profitable, with dividends not expected to be paid to its shareholders during 2021 – during the time at which the company continues to execute the recapitalization process.
The ratings considered JNL’s strong market share and distribution capabilities as a leader in the variable annuity and retirement space, which is supported by a quantitative enterprise risk management framework. It is AM Best’s view that the capital profile of the rating group, when fully funded, will be sufficient to grow future business.
The following Long-Term IRs have been affirmed, with stable outlooks:
Jackson National Life Insurance Company—
— “bbb+” (Good) on USD 250 million 8.15% surplus notes, due 2027
Jackson National Life Global Funding – “a” (Excellent) program rating
— “a” (Excellent) on all outstanding notes issued under the program
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.