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FOR IMMEDIATE RELEASE
OLDWICK - MAY 15, 2015 09:46 AM (EDT)
A.M. Best has placed under review with positive implications the financial strength rating of B++ (Good) and the issuer credit rating of "bbb" of Sterling Life Insurance Company (Sterling) (Chicago, IL). The rating action follows the announcement that Sterling's parent, WellCare Health Plans, Inc. (headquartered in Tampa, FL), has recently entered into a definitive agreement to sell Sterling to Cigna Corporation (Cigna) (headquartered in Bloomfield, CT) [NYSE: CI].
A.M. Best believes that upon the completion of the transaction, Sterling's policyholders should benefit from the financial strength of Cigna. The acquisition of Sterling fits Cigna's strategy to further increase the scale of its Medicare supplement business. The ratings will remain under review until the completion of the transaction and A.M. Best's discussions with Cigna regarding the role of Sterling within the Cigna organization.
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:
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.