Best’s News & Research Service - March 17, 2022 12:18 PM (EDT)
AM Best Comments on Credit Ratings of Members of Fidelity & Guaranty Life Group Following Partial Spinoff Announcement
- March 17, 2022 12:18 PM (EDT)
Oldwick //BestWire// - AM Best has commented that the Credit Ratings (ratings) of Fidelity & Guaranty Life Insurance Company (Des Moines, IA) and Fidelity & Guaranty Life Insurance Company of New York (New York, NY) (collectively referred to as Fidelity & Guaranty Life Group) remain unchanged following the recent announcement that Fidelity National Financial, Inc. (FNF) plans to dividend to its shareholders, on a pro-rata basis, 15% of the common stock of its wholly owned subsidiary, F&G Annuities & Life, Inc., (a holding company for Fidelity & Guaranty Life Group) in order to enhance and more fully recognize the overall market value for FNF shareholders and allow them to invest directly in Fidelity & Guaranty Life Group. The partial spinoff is intended to be structured as a taxable dividend to FNF shareholders and is targeted to be completed in the third quarter of 2022.
AM Best notes that there are no expected changes in strategy, operations or management at FNF or Fidelity & Guaranty Life Group. In addition, AM Best believes that Fidelity & Guaranty Life Group will continue to benefit from the financial resources and diversification benefits provided by FNF as demonstrated by the conversion of its $400 million intercompany loan to Fidelity & Guaranty Life Group into equity prior to the distribution.
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 Performance Assessments, 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.