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
  • Fitch Affirms Fidelity & Guaranty Life’s IFS Rating; Removes Rating Watch Evolving

    October 26, 2016 by Fitch Ratings

    NEW YORK–(BUSINESS WIRE)–Fitch Ratings has affirmed the Insurer Financial Strength Ratings (IFS) for the life insurance subsidiaries, Fidelity & Guaranty Life Insurance Company and Fidelity & Guaranty Life Insurance Company of New York (collectively F&G Life) at ‘BBB’. The IFS ratings were taken off Rating Watch Evolving and a Stable Outlook has been assigned.

    Fitch has also revised the Rating Watch to Positive from Evolving on the ‘BB’ Issuer Default Rating (IDR) assigned to Fidelity & Guaranty Life Holdings, Inc., (FGLH) and the ‘BB-‘ senior unsecured note rating. A complete list of rating actions follows at the end of this release.

    KEY RATING DRIVERS

    F&G Life’s ratings were placed on Rating Watch Evolving in November 2015 following the announcement of an agreement that the company will be acquired by China-based Anbang Insurance Group Co., Ltd. (Anbang) in an all-cash transaction valued at approximately $1.58 billion. The transaction is expected to close once the regulatory approval process concludes and after the satisfaction of other customary closing conditions.

    Today’s rating actions follow Fitch’s review of Anbang’s financial profile and strategic fit of F&G Life within the Anbang organization. Fitch expects F&G Life will be considered a strategically ‘Important’ subsidiary of Anbang post-close, and Anbang’s ownership will be considered neutral to F&G Life’s ratings. As such, F&G Life’s IFS ratings largely reflect the company’s standalone credit profile.

    Anbang has been active in the acquisition of international assets in insurance, banking, and real estate in the U.S., Europe, and South Korea. Fitch expects F&G Life’s existing management team and operating strategies will largely remain in place following the close of the transaction. Anbang’s proposed purchase of F&G Life represents the company’s initial entry into the U.S. insurance market, and serves to increase the geographic diversification of its investments.

    Fitch believes Anbang’s ownership will not alter F&G Life’s standalone rating profile in part due to the standard restrictions on the minimum capital position and dividend payments typically imposed by U.S. regulators to ring-fence assets and protect the company’s capital position and policyholders. Any capital injection from Anbang or capital raise by F&G Life would remain within F&G Life subject to standard restrictions on timing and amounts of dividend outflows.

    The revision of the Ratings Watch status for the IDR and senior unsecured note ratings of FGLH to Positive reflects Fitch’s expectation that the ratings will likely be upgraded one notch following the completion of the acquisition. Currently, the FGLH ratings reflect non-standard (i.e., wider) notching from the IFS rating as a result of the rating and financial profile of its highly leveraged parent, HRG Group Inc. (HRG; ‘B’ IDR). Given the absence of high leverage and more normalized financial flexibility of the prospective new parent, the ratings of FGLH will reflect standard notching from the IFS ratings once the transaction is completed.

    Fitch’s ratings for F&G Life continue to reflect the company’s relatively narrow product focus and liability profile, strong balance sheet profile, and improved operating performance. The ratings also consider the competitive and regulatory challenges tied to the company’s strategic focus selling fixed indexed annuities (FIAs) through independent marketing organizations (IMOs), and macroeconomic challenges associated with low interest rates.

    Fitch expects the implementation of the Department of Labor (DOL) fiduciary rule in 2017 will have a negative impact on the sale of FIAs in qualified markets. While Fitch does not see this as an immediate rating issue, the DOL rules may cause changes in operating strategies that could impact F&G Life’s risk profile and ratings longer term.

    F&G Life’s recent financial performance and balance sheet fundamentals remain in line with rating expectations. Operating performance for first fiscal three quarters 2016 improved over prior year due to the absence of elevated impairments and wider net investment spread from a combination of lowering crediting rates and repositioning to higher yielding assets.

    F&G Life’s strong balance sheet profile reflects the company’s adequate statutory capitalization, moderate leverage, and good asset quality. The company’s year-end 2015 RBC of 401% was strong for the rating category. FGL’s PRISM capital model score is on the high end of ‘Adequate’, which is within expectations for its current rating category.

    Fitch views F&G Life’s overall investment quality to be comparable to peers and notes that the company’s investment portfolio tends to overweight public bonds but underweight mortgages loans and alternatives. Investment impairments returned to historical averages in the first three quarters of 2016 following elevated levels in 2015.

    RATING SENSITIVITIES

    Fitch could upgrade the IDR and senior unsecured note ratings of FGLH following the close of the transaction based on the relative improvement of the parent company financial profile.

    Fitch could affirm the IDR and senior unsecured note ratings of FGLH at current levels if the transaction doesn’t close or if there has been a material unexpected deterioration in Anbang’s credit profile.

    All of F&G Life’s ratings could be downgraded by the following: an unexpected change in the Anbang transaction which negatively impacts F&G Life’s credit profile; F&G Life’s consolidated RBC ratio falling below 300% with operating leverage above 20x; consolidated financial leverage for FGL exceeding 35%; maximum statutory dividend interest coverage falling below 3.0x; operating ROE below 5% over four consecutive quarters.

    Conversely, F&G Life’s ratings could be upgraded by the following: consolidated RBC above 400%; financial leverage below 25%; maintain operating ROEs above 10% on a consistent basis.

    Fitch affirms the following ratings with a Stable Outlook:

    Fidelity & Guaranty Life Insurance Company

    Fidelity & Guaranty Life Insurance Company of New York

    –IFS rating ‘BBB’.

    Fitch has revised the Rating Watch status to Positive from Evolving for the following ratings:

    Fidelity & Guaranty Life Holdings, Inc.

    –Long-term IDR ‘BB’;

    –Senior unsecured note due April 2021 ‘BB-‘.

    Additional information is available on www.fitchratings.com.

    Applicable Criteria

    Insurance Rating Methodology (pub. 15 Sep 2016)

    https://www.fitchratings.com/site/re/887191

    Additional Disclosures

    Dodd-Frank Rating Information Disclosure Form

    https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1013376

    Solicitation Status

    https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1013376

    Endorsement Policy

    https://www.fitchratings.com/regulatory

    ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTPS://WWW.FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

    Copyright © 2016 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch’s factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third-party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch’s ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed.

    The information in this report is provided “as is” without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch reports have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed or withdrawn at any time for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers.

    For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an Australian financial services license (AFS license no. 337123) which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001.

    Contacts

    Fitch Ratings
    Primary Analyst
    Nelson Ma, CFA, +1-212-908-0273
    Director
    Fitch Ratings, Inc.
    33 Whitehall Street
    New York, NY 10004
    or
    Secondary Analyst
    Douglas L. Meyer, CFA, +1-312-368-2061
    Managing Director
    or
    Committee Chairperson
    Douglas Pawlowski, CFA, +1-312-368-2054
    Senior Director
    or
    Media Relations
    Hannah James, New York, +1-646-582-4947
    hannah.james@fitchratings.com

    Originally Posted at Business Wire on October 19, 2016 by Fitch Ratings.

    Categories: Industry Articles
    currency