Best’s News & Research Service - November 11, 2015 03:57 PM (EST)
A.M. Best Places Ratings of Fidelity & Guaranty Life Holdings, Inc. and Its Key Subsidiaries Under Review
Oldwick //BestWire// - A.M. Best has placed under review with developing implications the financial strength rating (FSR) of B++ (Good) and the issuer credit ratings (ICR) of “bbb+” of the key life/health subsidiaries of Fidelity & Guaranty Life Holdings, Inc. (FGL) (Delaware). Concurrently, A.M. Best has placed under review with developing implications the ICR and existing senior issue rating of “bb+” of FGL.
The action follows the announcement on Nov. 9, 2015, that FGL is being acquired by the Beijing, China- based Anbang Insurance Group for approximately $1.58 billion in cash. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the second quarter of 2016.
The under review status reflects the uncertain view of the credit profile of Anbang Insurance Group as well as uncertainty regarding the future business plans and strategic role that FGL will play in the Anbang Insurance Group.
A.M. Best anticipates that FGL’s ratings will be removed from under review following the close of the transaction and the completion of A.M. Best’s discussions with management. Any actual and/or anticipated changes to FGL’s financial profile will be reviewed to assess their impact on the company’s ratings. Additionally, A.M. Best will factor in its view of the credit profile of Anbang Insurance Group into the final rating determination.
The FSR of B++ (Good) and the ICRs of “bbb+” have been placed under review with developing implications for the following key life/health subsidiaries of Fidelity & Guaranty Life Holdings, Inc.:
- Fidelity & Guaranty Life Insurance Company
- Fidelity & Guaranty Life Insurance Company of New York
The following issue rating has been placed under review with developing implications:
— “bb+” on $300 million 6.375% senior unsecured notes, due 2021
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.