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FOR IMMEDIATE RELEASE
OLDWICK - MAY 23, 2017 09:00 AM (EDT)
A.M. Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of Farmers New World Life Insurance Company (FNWL) (Mercer Island, WA), a subsidiary of Zurich Insurance Group Ltd (Zurich), will remain unchanged following its recent announcement that it has executed a reinsurance transaction for its closed annuity liabilities with Reinsurance Group of America, Incorporated. The outlook of these Credit Ratings (ratings) remains stable.
The transaction primarily has been structured as a coinsurance transaction of its closed annuity blocks, representing covered liabilities of approximately $2.3 billion. While the transaction is sizeable, A.M. Best does not expect it to result in a significant change to FNWL’s operating profile, business profile or risk-adjusted capitalization level; however, the transaction likely will reduce overall required capital at FNWL. The transaction is being executed as part of Zurich’s overall strategy to reduce interest rate tail risk, deploy capital effectively and improve operating profitability at the consolidated level.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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