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 (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • 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
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • AM Best Affirms Credit Ratings of Equitable Holdings, Inc. and Its Life Subsidiaries

    February 1, 2022 by AM Best

    OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of Equitable Financial Life Insurance Company of America (EFLICOA) (Phoenix, AZ) and Equitable Financial Life Insurance Company (EFLIC) (New York, NY). EFLICOA and EFLIC collectively are referred to as Equitable Life Group. The outlook of these Credit Ratings (ratings) is stable.

    Concurrently, AM Best has affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb” (Good) of Equitable Financial Life and Annuity Company (Equitable Financial Life and Annuity) (Lakewood, CO). Additionally, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) of Equitable Holdings, Inc. (Delaware) and all of its Long-Term Issue Credit Ratings (Long-Term IRs). The outlook of these ratings is stable. Please see below for a detailed list of the ratings of the other subsidiaries and Long-Term IRs.

    The ratings of Equitable Life Group reflect its balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

    Equitable Life Group’s ratings are attributable to its strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which declined from the strongest level primarily from a continued higher dividend payout. The overall balance sheet strength continues to be supported by the group’s strong financial flexibility, well-developed, sophisticated risk management practices providing confidence in the capital management approach, and its position among the market leaders in variable annuities (VA), variable universal life and 403(b) retirement annuities. In addition, the group maintains a dynamic hedging strategy to support its VA liabilities. Through its growing partnership with AllianceBernstein affiliate, an additional significant investment of permanent capital was provided by Equitable Life Group to build out private alternatives and private placements, as the group continues to maintain a significant global asset management footprint, which provides a material source of unregulated cash flow to the holding company.

    Additionally, the group has recorded consistently strong operating earnings in the past several years on a non-GAAP operating basis with some volatility. The after-tax non-GAAP financial measure is used to evaluate financial performance on a consolidated basis, determined by making certain adjustments to consolidated after-tax net income attributable to holdings that relate to derivative positions, which is a large source of volatility in net income. Consolidated financial leverage at Equitable Holdings, Inc. has increased due to additional issuance of perpetual preferred stock but is still considered to be moderate. AM Best notes that the holding company maintains access to a contingent capital facility, which further enhances the group’s positive financial flexibility. Equitable Life Group also benefits from a diversified and productive distribution model, which includes a large captive distribution channel, as well as extensive third-party distribution relationships. The group’s overall strong liquidity is supported further by an additional new funding agreement-backed note program, and the Federal Home Loan Bank borrowing program.

    While Equitable Life Group intends to maintain at least a strong risk-adjusted capital profile at a minimum going forward, it remains constantly exposed to equity market pressures on both sides of its balance sheet. These exposures emanate from its variable insurance products with guaranteed benefits, as well as potential volatility in revenue from asset fees, as a result of market value changes in its large separate account book of business and derivative activity. Although, Equitable Life Group is focused on significantly reducing exposure to the VA guarantees on its books, as the majority of new sales for the company remain non-interest sensitive in nature.

    AM Best also notes that Equitable Life Group continues to maintain an appropriate ERM framework following its initial public offering (IPO), with a focus on hedging strategies to protect its statutory and economic capital. The company has updated its economic capital model to be more U.S. centric by shifting from a Solvency II framework to a U.S. economic and risk-based capital/contingent tail expectation-centric capital model post-IPO.

    The ratings of Equitable Financial Life and Annuity reflect its balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate ERM.

    The Long-Term IRs have been assigned with stable outlooks:

    Equitable Financial Life Global Funding “a+” (Excellent) program rating

    The following Long-Term IRs have been affirmed with stable outlooks:

    Equitable Financial Life Global Funding “a+” (Excellent) program rating
    — “a+” (Excellent) on all outstanding notes issued under the program

    Equitable Holdings, Inc
    — “bbb+” (Good) on $1.5 billion 5.0% senior unsecured fixed rate, due 2048
    — “bbb+” (Good) on $1.5 billion 4.35% senior unsecured fixed rate, due 2028
    — “bbb+” (Good) on $800 million 3.9% senior unsecured fixed rate, due 2023
    — “bbb+” (Good) on $350 million 7.0% senior unsecured debentures, due 2028 (originally issued by AXA Financial, Inc.)
    — “bbb-” (Good) on $800 million 5.25% preferred stock
    — “bbb-” (Good) on $500 million 4.95% preferred stock
    — “bbb-” (Good) on $300 million 4.30% preferred stock

    This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

    AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

    Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

    Contacts

    Igor Bass
    Senior Financial Analyst
    +1 908 439 2200, ext. 5109
    igor.bass@ambest.com

    Edward Kohlberg
    Director
    +1 908 439 2200, ext. 5664
    edward.kohlberg@ambest.com

    Christopher Sharkey
    Manager, Public Relations
    +1 908 439 2200, ext. 5159
    christopher.sharkey@ambest.com

    Jim Peavy
    Director, Communications
    +1 908 439 2200, ext. 5644
    james.peavy@ambest.com

    Originally Posted at BusinessWire on January 27, 2022 by AM Best.

    Categories: Industry Articles
    currency