S&P Global Market Intelligence compiles ratings actions in the insurance space daily through 5 p.m. ET. Actions after 5 p.m. ET will be included in the following day's roundup.
U.S. and Canada
Fitch Ratings downgraded Jackson National Life Insurance Co.'s long-term issuer default rating to A- from A, insurer financial strength rating to A from A+ and the short-term insurer financial strength to F1 from F1+.
The agency also downgraded Jackson National Life Insurance Co. of New York's insurer financial strength rating to A from A+.
The outlook remains negative, reflecting the potential impact of the ongoing coronavirus pandemic and Fitch's pro forma stress results.
This ratings action follows the announcement that Prudential PLC's board decided to fully separate and gradually divest Jackson National Life Insurance, beginning with a minority IPO planned for the first half of 2021.
Fitch has revised its view of the strategic importance of Jackson to limited importance from important. Jackson's ratings reflect strong but volatile financial performance, a concentrated focus on the variable annuity market and an improving capital position.
At the same time, the rating agency affirmed the A long-term issuer default rating and the F1 short-term issuer default rating of Prudential PLC.
The outlook remains negative, indicating the ongoing COVID-19-related impact on Jackson's standalone credit profile and the group's pro forma stress results based on the agency's coronavirus assessment.
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Moody's downgraded the insurance financial strength ratings of Jackson National Life Insurance Co. and Jackson National Life Insurance Co. of New York to A2 from A1. The outlook was changed to stable from rating under review.
The rating agency also affirmed the P-1 short-term insurance financial strength rating of Jackson National Life Insurance Co.
The downgrade considers the removal of the one notch of uplift associated with the financial support from parent Prudential PLC, and reflects the diminished support the U.S. business will receive from the parent due to the planned separation.
The ratings of Jackson National Life Insurance Co. and Jackson National Life Insurance Co. of New York are based on their leading positions in the U.S. asset accumulation business, as well as sizable market share in the variable annuity business. It also reflects the companies' broad annuity product offering, use of multiple distribution channels and an efficient back office infrastructure.
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S&P Global Ratings lowered the long-term issuer credit and financial strength ratings of Jackson National Life Insurance Co. and Jackson National Life Insurance Co. of New York. to A from A+.
The agency also downgraded the short-term issuer credit rating to A-1 from A-1+ of Jackson National Life Insurance Co.
The outlook on the ratings was changed to stable from negative.
The agency now views Jackson as a nonstrategic part of the Prudential group, rather than strategically important.
Simultaneously, the agency affirmed the A long-term issuer credit rating and the A-1 short-term issuer credit rating of Prudential PLC, and the AA- long-term issuer credit and financial strength ratings of its Singapore-based core operating entity, Prudential Assurance Co. Singapore (Pte) Ltd.
The long-term outlooks on the companies are stable.
The stable outlook on Prudential indicates S&P Global Ratings' expectation that the company will maintain capital adequacy levels at least commensurate with an AA level, and its operating performance will remain strong over the medium term, despite the negative impact of COVID-19 in 2020.
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S&P Global Ratings assigned the B issuer credit rating to Maine-based insurance services broker Cross Financial Corp.
The outlook is stable, reflecting the agency's view that Cross Financial will continue to grow while maintaining credit protection measures relatively more conservative than similarly rated peers despite COVID-19-related business disruption and economic slowdown.
Cross Financial's rating reflects its weak business risk profile and highly leveraged financial risk profile, the agency said.
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