S&P puts three insurers on watch

S&P said it placed the ratings of three nonoperating holding companies for insurers on CreditWatch with negative implications.

The companies are Globe Life Inc., Prudential Financial Inc., and Reinsurance Group of America Inc. The agency rates these three NOHCs two notches below the ratings on their core insurance operating companies.

“The CreditWatch placement reflects the potential reassessment of our base-case assumptions on regulatory restrictions to payments from the insurance operating entities to these NOHCs. We're also reviewing any potential mitigants to these restrictions,” S&P said in a press release.

Over the coming weeks, the agency said it will contact the issuers and the relevant external third parties. “We aim to resolve the Credit Watch placement over the next three months. Upon resolution, we could either lower our issuer credit ratings on these holding companies by one notch or affirm them.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.