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Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Comments on Credit Ratings of Great-West Lifeco Inc. and Its Subsidiaries Following Announced Acquisition of Prudential’s Retirement Business

July 21, 2021 GMT

OLDWICK, N.J.--(BUSINESS WIRE)--Jul 21, 2021--

AM Best has commented that the Credit Ratings (ratings) of Great-West Lifeco Inc. (Lifeco) and its subsidiaries remain unchanged following the July 21, 2021 announcement that its U.S. subsidiary, Empower Retirement (legally known as Great West Life & Annuity Insurance Company) has reached a definitive agreement to acquire Prudential Financial, Inc.’s (Prudential) full-service retirement business for approximately CAD 4.45 billion (USD 3.55 billion).

Lifeco expects to fund the acquisition with approximately USD 1.15 billion of limited recourse capital notes and USD 1.0 billion of short-term debt, in addition to existing resources. While Lifeco’s financial leverage will initially increase to just over 30%, AM Best expects financial leverage and interest coverage ratios to improve relatively quickly as the acquisition is expected to be immediately accretive to earnings and short-term borrowings are paid down. AM Best notes that Empower Retirement has a favorable track record of successfully acquiring and integrating prior acquisitions and the acquisition of Prudential’s retirement business will significantly increase the company’s scale and market share in the full-service retirement space.

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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.

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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 © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210721005958/en/

CONTACT: Anthony McSwieney

Senior Financial Analyst

+1 908 439 2200, ext. 5715

anthony.mcswieney@ambest.comMichael Adams

Associate Director

+1 908 439 2200, ext. 5133

michael.adams@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comJim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW YORK NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 07/21/2021 05:32 PM/DISC: 07/21/2021 05:32 PM

http://www.businesswire.com/news/home/20210721005958/en