AM Best Places Credit Ratings of Life Insurance Company of North America and Cigna Life Insurance Company of New York Under Review With Positive Implications
OLDWICK, N.J.--(BUSINESS WIRE)--Dec 19, 2019--
AM Best has placed under review with positive implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” of Life Insurance Company of North America (LINA) (Philadelphia, PA) and Cigna Life Insurance Company of New York (CLICNY) (New York, NY). The rating actions follow the recent announcement by Cigna Corporation (Cigna) [NYSE: CI] that it has signed a definitive agreement to sell its group life and disability insurance business to New York Life Insurance Company.
On Dec. 18, 2019, Cigna announced the sale of its group insurance operations, which includes Life Insurance Company of North America and Cigna Life Insurance Company of New York, in a transaction valued at $6.3 billion. Cigna is expected to utilize the proceeds of the transaction to pay down debt and for share repurchases, with exact amounts to be determined. The transaction is expected to close in 2020 and is subject to regulatory approvals.
The positive implications reflects the financial strength of the acquirer, New York Life Insurance Company. The ratings will remain under review pending completion of the transaction and discussions with the new parent.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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KEYWORD: NEW JERSEY EUROPE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES
SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 12/19/2019 12:15 PM/DISC: 12/19/2019 12:15 PM