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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 19, 2019 08:29 AM (EST)
AM Best has commented that the Credit Ratings (ratings) of New York Life Insurance Company (New York Life) (New York, NY) and its subsidiaries are expected to remain unchanged following its announced acquisition of Cigna Corporation’s group life and disability insurance business.
The acquisition will include two legal entities, Life Insurance Company of North America, and Cigna Life Insurance Company of New York. The acquisition fits nicely into New York Life’s existing foundational strategies. The very strong capital position of New York Life should be strengthened further over the long term by the diversification of Cigna’s non-medical group insurance entities. The transaction purchase price of USD $6.3 billion is to be paid in cash and funded by a combination of existing capital and surplus notes previously issued by New York Life. The transaction is expected to close in the third quarter of 2020, subject to regulatory approvals. The transaction also will establish New York Life in a top five position in the group life & disability insurance market and provide an additional source of diversified earnings.
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 provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.