We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (16,526)
  • Industry Conferences (3)
  • Industry Job Openings (38)
  • Negative Media (138)
  • Positive Media (73)
  • Sheryl's Articles (617)
  • Sheryl's Blogs (175)
  • Wink's Articles (241)
  • Wink's Blogs (255)
  • Wink's Press Releases (93)
  • Blog Archives

  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • May 2008
  • February 2008
  • August 2006
  • A.M. Best Downgrades Ratings of Aviva Life and Annuity Company and Its Subsidiary; Places Ratings Under Review

    December 24, 2012 by N/A

    Best’s News Service – December 21, 2012 03:17 PM

    OLDWICK, N.J. – A.M. Best Co. has downgraded the financial strength rating to A- (Excellent) from A (Excellent) and issuer credit ratings (ICR) to “a-” from “a” of Aviva Life and Annuity Company (ALAC) (West Des Moines, IA) and its wholly owned subsidiary, Aviva Life and Annuity Company of New York (ALACNY) (Melville, NY) (together referred to as Aviva USA). Concurrently, the ratings have been placed under review with negative implications.

    Both ALAC and ALACNY are the principal insurance subsidiaries of Aviva USA Corporation, which is an indirect, wholly owned subsidiary of Aviva plc (Aviva). Aviva is a global diversified financial services company based in the United Kingdom.

    The rating actions follow the Dec. 21, 2012, announcement by Aviva that it had agreed to sell Aviva USA Corporation to Athene Holding Ltd. for $1.8 billion. Aviva will receive sales proceeds of $1.55 billion in cash, after the repayment of external debt. Of this, an amount of up to $250 million may be received in the form of an interest bearing vendor loan, repayable in cash within 12 months of completion. The transaction is expected to close in 2013, subject to regulatory and other customary approvals.

    On Oct. 31, 2012, A.M. Best had downgraded Aviva USA’s ICRs by one notch to reflect uncertainty regarding Aviva’s future funding of growth, as Aviva had provided significant capital contributions to Aviva USA. Given the public announcement of sale, A.M. Best’s rating actions reflect its belief that Aviva USA now operates on a stand-alone basis, along with the credit profile of the potential buyer and challenges associated with establishing a new brand identity.

    The ratings for Aviva USA continue to recognize its leading market position in indexed life insurance and fixed-indexed annuities, innovative product development and multiple distribution networks and its favorable risk-adjusted capitalization. Aviva USA markets a wide array of life and fixed annuity products through multiple distribution channels, which includes brokerage general agents, career agents, personal producing general agents and independent marketing organizations. Aviva USA has demonstrated a well-diversified investment portfolio and sound risk management practices. Aviva USA results are generally positive; however, in some periods when a reserve financing transaction occurs (e.g., December 2011), there is a surplus strain impacting statutory net income, with a corresponding offset in surplus. In periods when a reserve financing transaction is not in place, the redundant reserve strain negatively impacts results. Moreover, Aviva USA’s focus on indexed life insurance and annuities subjects its earnings to some equity market risk.

    The ratings will remain under review pending discussions with the new ownership group, a review of its business plan, investment strategy and capitalization position post-close. A.M. Best will also monitor the ability of Aviva USA to maintain its distribution relationships during this time of transition.

    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 http://www.ambest.com/ratings/methodology.
    BN-NJ-12-21-2012 1517 ET #

    Originally Posted at Best's News Service on December 21, 2012 by N/A.

    Categories: Industry Articles
    currency