A.M. Best Comments On Ratings Of Presidential Life Insurance Company And Athene Annuity & Life Assurance Company
A.M. Best Co. has commented that the financial strength ratings of B++ (Good) and issuer credit ratings of “bbb+” of Presidential Life Insurance Company (PLIC) (Nyack, NY) and Athene Annuity & Life Assurance Company (Athene Annuity) (Greenville, SC) are unchanged following Athene Holding Ltd.’s (Athene) (Bermuda) July 13, 2012 announcement that it had reached a definitive agreement for Athene Annuity to acquire PLIC. PLIC is the operating company for Presidential Life Corporation (Presidential) (Nyack, NY) [NASDAQ: PLFE], and Presidential’s ICR of “bb+” also is unchanged.
The $14.00 per share cash price represents an aggregate purchase price of approximately $415 million. In A.M. Best’s opinion, the transaction should not have a significant effect on the financial strength of the insurance operating companies. The acquisition of PLIC’s fixed annuity block is consistent with Athene’s growth strategy; however, the rapid pace of acquisitions will need to be monitored, and A.M. Best will review the integration along with the impact on PLIC’s operating results and risk-based capital when the acquisition is finalized and implemented.
Athene Annuity is Athene’s main U.S. operating platform, which accepts in-force fixed and fixed indexed annuity business primarily from U.S. primary insurers. In addition, its business model calls for an increasing share of new business obtained by retail annuity sales through third party distributors. Presidential markets a variety of fixed annuity, life insurance as well as accident and health insurance products and is licensed to market its products in all 50 states and the District of Columbia.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at http://www.ambest.com/ratings/methodology.Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
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