A.M. Best Comments on Credit Ratings of Gerber Life Insurance Company Following Strategic Announcement
February 15, 2018 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 Rating of “a” of Gerber Life Insurance Company (Gerber Life) (White Plains, NY) remain unchanged following an announcement regarding its potential sale made during the Nestlé, S.A. (Nestlé) (Switzerland) [Swiss: NESN] earnings call on Feb. 15, 2018. The outlooks of these Credit Ratings remain stable.
Gerber Life is a wholly owned subsidiary of Nestlé Insurance Holdings, Inc, which is a unit of Nestlé, a food and beverage conglomerate with operations in almost every country around the world.
This comment follows Nestlé’s disclosure during its 4th quarter 2017 public earnings call that the organization is exploring strategic options, including the potential sale of Gerber Life. The company’s ratings were affirmed on May 16, 2017 and currently consider the financial strength of its ultimate parent, Nestlé. A.M. Best intends to further discuss the potential of a sale with Gerber Life management, including the impact on the company’s ratings if a divestiture is announced.
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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