OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A (Excellent) from B+ (Good) and the Long-Term Issuer Credit Rating to “a” from “bbb-” of Jefferson National Life Insurance Company (Jefferson National) (Dallas, TX). The outlook assigned to these Credit Ratings (ratings) is stable.
The rating actions follow Nationwide Life Insurance Company’s (Nationwide) recently completed acquisition of Jefferson National. The rating upgrades reflect A.M. Best’s view that Jefferson National will benefit from Nationwide’s substantial financial resources and brand name to support growth within the registered investment advisor (RIA) and fee-based advisor marketplaces. Similarly, the transaction will provide Nationwide access to Jefferson National’s RIAs and fee-based advisors, as well as access to the clients they serve. A.M. Best expects Jefferson National’s management to remain in place, and the companies expect no changes in Jefferson National’s approach to sales and service. A.M. Best also notes that Jefferson National will be transitioning to the Nationwide brand.
Jefferson National’s stand-alone credit profile currently benefits from improved profitability, a lower-risk business profile focusing on investment-only variable annuities, increasing assets under management and adequate risk-adjusted capitalization. Offsetting these positive factors are Jefferson National’s current mono-line product portfolio and an inconsistent earnings history.
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.
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