Best’s News & Research Service - February 15, 2018 04:29 PM (EST)
A.M. Best Comments on Credit Ratings of Gerber Life Insurance Company Following Strategic Announcement
- February 15, 2018 04:29 PM (EST)
Oldwick //BestWire// - A.M. Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Gerber Life Insurance Company (Gerber Life) (White Plains, NY) remain unchanged following an announcement regarding its potential sale made during the Nestlé, S.A. (Nestlé) (Switzerland) [Swiss: NESN] earnings call on Feb. 15, 2018. The outlooks of these Credit Ratings (ratings) remain stable.
Gerber Life is a wholly owned subsidiary of Nestlé Insurance Holdings, Inc, which is a unit of Nestlé, a food and beverage conglomerate with operations in almost every country around the world.
This comment follows Nestlé’s disclosure during its 4th quarter 2017 public earnings call that the organization is exploring strategic options, including the potential sale of Gerber Life. The company’s ratings were affirmed on May 16, 2017 and currently consider the financial strength of its ultimate parent, Nestlé. A.M. Best intends to further discuss the potential of a sale with Gerber Life management, including the impact on the company’s ratings if a divestiture is announced.
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