Best’s News & Research Service - December 01, 2023 10:34 AM (EST)
AM Best Affirms Credit Ratings of Jackson National Life Insurance Company and Its Affiliates
- December 01, 2023 10:34 AM (EST)
Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (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, Brooke Life Insurance Company. These companies together are referred to as Jackson National Group (JNG). The outlook of the FSR is stable, while the outlook of the Long-Term ICRs is positive. 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 the Long-Term IR of “bbb+” (Good) of JNL’s surplus notes.
In addition, AM Best has affirmed the Long-Term ICR of “bbb” (Good) of Jackson Financial Inc. (Delaware). The outlook of these Credit Ratings (ratings) is positive. 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 strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
The rating affirmations reflect the continued progress in the execution of the group’s strategic plan. The balance sheet strength assessment factors in a Best’s Capital Adequacy Ratio (BCAR) that fluctuates between the strong and very strong range, upstreaming of dividends to the parent, appropriate asset liability management, a targeted long-term regulatory capital position above 425%, and financial flexibility at the holding company level. Premium growth continues to be led by the group’s indexed annuity core business segment, driving overall sales diversification. Statutory earnings for 2022 were favorable, while year-to-date results for 2023 have shown slightly more volatile. Results are expected to continue to support the group’s growth. An expectation of future statutory capital growth through positive organic earnings is factored into the current positive outlooks.
The ratings also consider the group’s business profile with strong market share and distribution capabilities as a leader in the annuity and retirement space. Lastly, the ratings are supported by an ERM framework that is commensurate with the group’s risk profile.
The following Long-Term IRs have been affirmed, with positive 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 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.