A.M. Best Comments on Credit Ratings of Global Atlantic Financial Group Limited Following Announced Transaction With The Hartford Financial Services Inc.
December 11, 2017 by A.M. Best
OLDWICK, N.J.–(BUSINESS WIRE)–A.M. Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of the subsidiaries of Global Atlantic Financial Group Limited (Global Atlantic) (Hamilton, Bermuda), as well as the Long-Term ICR of “bbb-“ of Global Atlantic, remain unchanged following the Dec. 4, 2017, announcement that a definitive agreement has been signed by a consortium of private investors, including Global Atlantic, to acquire Talcott Resolution (Talcott) from The Hartford Financial Services Group, Inc. The outlook of these Credit Ratings (ratings) remains positive.
Under the terms of the agreement, Global Atlantic will take a minority equity position in Talcott and assume approximately $9 billion of fixed annuities, payout annuities and structured settlements through a coinsurance agreement. Global Atlantic’s participation in the transaction is aligned with its long-term strategy of assuming blocks of fixed annuity products since its inception in 2004, when it was part of The Goldman Sachs Group, Inc. A.M. Best notes that the transaction results in a material increase to Global Atlantic’s asset base; however, the direct impact to capitalization and operating results are expected to be modest and slightly accretive. The transaction is expected to close in the second quarter of 2018, pending regulatory approval and other customary closing conditions.
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