We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • A.M. Best Affirms Ratings of Prudential Financial Inc. and Its Subsidiaries

    May 15, 2015 by Business Wire

    OLDWICK, N.J.–(BUSINESS WIRE)–A.M. Best has affirmed the financial strength rating (FSR) of A+ (Superior) and the issuer credit ratings (ICR) of “aa-” of the domestic life/health insurance subsidiaries of Prudential Financial, Inc. (PFI) (Newark, NJ) [NYSE: PRU]. Concurrently, A.M. Best has affirmed the ICR of “a-” of PFI and all existing debt ratings of the group. All domestic life/health subsidiaries of PFI are collectively referred to as Prudential. The outlook for all ratings is stable.

    The rating affirmations reflect Prudential’s continued strong market positions in its diversified businesses, adequate risk-adjusted capitalization and positive operating performance in most of its business segments. The ratings also reflect PFI’s considerable financial flexibility and strong liquidity. A.M. Best notes the successfully completed integrations of sizeable transactions, including The Hartford Financial Services Group, Inc.’s individual life insurance reinsurance transaction and several large pension risk transfer (PRT) transactions during the most recent period. Prudential is considered to be one of the largest providers of PRT solutions in the United States and added over $5 billion in liabilities last year. A.M. Best believes PFI continues to be viewed as an attractive counterparty for large transactions due to its ability to finance them, as well as to quickly and successfully integrate them.

    Prudential’s diverse business profile continues to be a strength of the organization. The international segment, which is dominated by its Japanese operations, remains the single largest segment representing close to half of the company’s total operating earnings. The international segment has benefited from the integration of Star/Edison, which has helped to increase earnings and further diversify market risk for the overall liability profile of PFI. In Prudential’s domestic business, the retirement segment has been the biggest area of growth, due to the successful closing of several large PRT deals. Furthermore, the company continues to rank as a leading variable annuity seller due to its diversified product offerings. Its unique auto-rebalancing feature continues to be a market-leading option. The rebalancing feature also reduces Prudential’s exposure to U.S. equity market volatility. In addition, improved group disability insurance claims experience has begun to emerge in the group insurance segment. Furthermore, the company’s investment portfolio continues to demonstrate positive trends with respect to impairments and remains in a substantial net unrealized gain position.

    Partially offsetting these positive rating factors is the increasingly large concentration of annuity reserves, due to the growth of PRT transactions, relative to its total statutory general account reserves. A.M. Best believes that in general, annuities are a less creditworthy line of business compared with ordinary life insurance products. However, Prudential has established a track record of successfully managing, and to some degree, mitigating many of the risks inherent in its various annuity product lines. Additionally, the low interest rate environment continues to have a negative impact on net investment yields and has also led to a recent material reserve strengthening as a result of asset adequacy testing. Moreover, A.M. Best notes that the allocation to commercial mortgages continues to increase, and relative to capital and surplus, is approximately twice the industry average, although this percentage declined slightly during the most recent period. In addition, Prudential has above average holdings of below investment grade fixed income securities relative to capital and surplus. A.M. Best notes that approximately one-third of Prudential’s below investment grade holdings are allocated to the closed block of participating life business, where positive and negative experience can be passed along to policyholders via dividends. Additionally, A.M. Best notes that Prudential continues to maintain a sizeable amount of liquidity, and its prudent utilization will continue to be monitored by A.M. Best.

    PFI continues to utilize significant amounts of operating leverage at levels exceeding most of its competitors. Although total leverage remains relatively high, financial leverage and interest coverage remain within the guidelines for the company’s current rating level. A.M. Best notes that its concerns in this area are mitigated somewhat by Prudential’s history of prudently managing its overall leverage. The company also continues to rely on captive insurers to help manage capital and the volatility of statutory earnings. A.M. Best will continue to review these structures in conjunction with its operating companies in its assessment of capital adequacy.

    A.M. Best believes that PFI is unlikely to experience positive rating movement over the near to medium term. Longer term, favorable rating actions can come from material progress in reducing financial and total leverage, continued strong sales and deposit activities, which provide additional earnings momentum and diversification, maintenance of strong liquidity and risk management practices and continuing low levels of credit impairments in the investment portfolio. Factors which could lead to negative rating actions include higher levels of total debt leverage beyond A.M. Best’s expectations, unfavorable market moves leading to increased material and sustainable liability reserve increases, product related embedded derivative and hedging losses and/or portfolio impairments, in addition to the potential for unforeseen risks in such a large and complex global enterprise.

    For a complete listing of Prudential Financial, Inc.’s FSRs, ICRs and debt ratings, please visit Prudential Financial, Inc.

    The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

    Key insurance criteria reports utilized:
    • A.M. Best’s Liquidity Model for U.S. Life Insurers
    • A.M. Best’s Perspective on Operating Leverage
    • Equity Credit for Hybrid Securities
    • Evaluating Country Risk
    • Evaluating U.S. Surplus Notes
    • Insurance Holding Company and Debt Ratings
    • Rating Funding Agreement-Backed Securities
    • Rating Members of Insurance Groups
    • Risk Management and the Rating Process for Insurance Companies
    • Understanding BCAR for U.S. and Canadian Life/Health Insurers

    This press release relates to rating(s) 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 visit A.M. Best’s Ratings & Criteria Center.

    A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

    Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
    Contacts

    A.M. Best Company
    Tom Zitelli
    Senior Financial Analyst
    908-439-2200, ext. 5412
    tom.zitelli@ambest.com
    or
    Tom Rosendale
    Assistant Vice President
    908-439-2200, ext. 5201
    thomas.rosendale@ambest.com
    or
    Christopher Sharkey
    Manager, Public Relations
    908-439-2200, ext. 5159
    christopher.sharkey@ambest.com
    or
    Jim Peavy
    Assistant Vice President, Public Relations
    908-439-2200, ext. 5644
    james.peavy@ambest.com

    Originally Posted at BusinessWire on May 13, 2015 by Business Wire.

    Categories: Industry Articles
    currency