A.M. Best Comments on Credit Ratings of Global Atlantic Financial Group Ltd Following Announced Talcott Resolution Transaction
December 12, 2017 by Best's News Service
Oldwick – 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.
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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BN-NJ-12-5-2017 1640 ET #