A.M. Best Assigns Issue Credit Rating to Torchmark Corporation’s Senior Unsecured Notes
OLDWICK, N.J.--(BUSINESS WIRE)--Sep 27, 2018--A.M. Best has assigned a Long-Term Issue Credit Rating of “a-” to the $550 million 4.55% senior unsecured notes due Sept. 15, 2028 that were issued by Torchmark Corporation (Torchmark) (headquartered in McKinney, TX ) [NYSE: TMK]. The outlook assigned to the Credit Rating (rating) is negative.
Proceeds from the sale of the senior notes will be utilized primarily for general corporate purposes, including the repurchase of existing debt and to provide additional capital to its operating insurance entities.A.M. Best notes that Torchmark’s financial leverage will increase over the near-term to just over 26%, but is expected to decline when the senior notes due 2019 either mature or are redeemed. Additionally, Torchmark’s financial flexibility remains strong and interest coverage has remained at just over ten times in recent periods.
Torchmark’s ratings recognize its multichannel distribution platform, diverse business mix and very strong operating results. Torchmark has established several market niches and continues to generate consistent revenue and operating earnings across the majority of its core segments, providing ample liquidity to service its debt obligation. However, both risk-adjusted capitalization and the absolute level of capital have generally declined at the insurance operating entities in recent periods. While any proceeds used to boost capitalization will be viewed favorably, A.M. Best will continue to monitor any trends in risk-adjusted capital levels over the near-term.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .
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CONTACT: A.M. Best
Michael Adams, +1-908-439-2200, ext. 5133
Senior Financial Analyst
William Pargeans, +1-908-439-2200, ext. 5359
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
Jim Peavy, +1-908-439-2200, ext. 5644
Director, Public Relations
KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE
SOURCE: A.M. Best
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PUB: 09/27/2018 03:29 PM/DISC: 09/27/2018 03:28 PM