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AM Best Comments on Credit Ratings of Protective Life Corporation and Its Subsidiaries Following Announced Reinsurance Agreement

January 24, 2019

OLDWICK, N.J.--(BUSINESS WIRE)--Jan 24, 2019--AM Best has commented that the Credit Ratings of Protective Life Corporation (Protective) (headquartered in Birmingham, AL) and its insurance subsidiaries remain unchanged following the announcement that it has entered into a reinsurance agreement to acquire approximately $20.0 billion of life and annuity liabilities of insurance subsidiaries of Great-West Lifeco, Inc. (Great-West).

Under the terms of the agreement, Protective, whose ultimate parent is Dai-ichi Life Holdings, Inc., will enter into a reinsurance agreement with Great-West for a seasoned block of life and annuity business, using a combination of excess capital, debt and a capital contribution from Dai-ichi Life Holdings, Inc., to fund the transaction. The acquisition is part of Protective’s core business strategy as an acquirer of life insurance blocks and adds balance to Protective’s recently acquired annuity block from Liberty Life Assurance Company of Boston as the liabilities are primarily universal life and whole life, including a large block of corporate-owned and bank-owned life insurance, and a moderate amount of annuities.

While the impact to Protective’s balance sheet is material given the size of the acquired blocks, AM Best notes that risk-adjusted capitalization will remain supportive of Protective’s current ratings. AM Best expects the acquisition to add diversification and scale to Protective’s existing acquired blocks with a moderate overall increase to operating earnings. Financial leverage and interest coverage are expected to remain within AM Best’s expectations for the current rating levels. The transaction is expected to close in the second quarter of 2019, pending regulatory approval and other customary closing conditions.

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 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 AM Best press releases, please view .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190124005827/en/

CONTACT: Louis Silvers

Senior Financial Analyst

+1 908 439 2200, ext. 5802

louis.silvers@ambest.com

Rosemarie Mirabella

Director

+1 908 439 2200, ext. 5892

rosemarie.mirabella@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: AM Best

Copyright Business Wire 2019.

PUB: 01/24/2019 05:03 PM/DISC: 01/24/2019 05:03 PM

http://www.businesswire.com/news/home/20190124005827/en

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