Powered by Business Wire
Search Results for Topix.net

Fitch: Northwestern Mutual's Announcement of Agreement to Sell Russell Has No Impact on Ratings

CHICAGO--(BUSINESS WIRE)--Northwestern Mutual Life Insurance Company (NM) announced yesterday that it has reached a definitive agreement to sell Russell Investments (Russell) to the London Stock Exchange Group plc (LSEG) for $2.7 billion.

In Fitch's opinion, the proposed transaction has no impact on NM's 'AAA' Insurer Financial Strength rating. Fitch has viewed Russell as a non-core business that provided a limited amount of earnings diversification to NM. The transaction is expected to result in a statutory gain, which will improve NM's already extremely strong statutory capital position.

Russell is a global investment firm overseeing almost $260 billion in assets and creator of the Russell Global Indexes, including the Russell 2000 Index, a well-known benchmark for U.S. small capitalization stocks.

Fitch expects proceeds from the sale will be reinvested in NM's general account in accordance with the current investment strategy. During 2013, NM contributed the holdings of Russell common stock to a wholly owned, non-insurance subsidiary at statement value and did not have a significant effect upon the company's financial statement.

NM has a leading competitive position in the U.S. individual life insurance market, extremely strong balance sheet fundamentals, and stable earnings profile. NM's total adjusted capital at March 31, 2014 increased 1.8% to $23.5 billion from year-end 2013 and companies combined total assets exceeded $218 billion at March 31, 2014.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--Insurance Rating Methodology (Nov. 13, 2013).

Applicable Criteria and Related Research:

Insurance Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=723072

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Andrew Davidson, CFA
Senior Director
+1-312-368-3144
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst:
Douglas Meyer, CFA
Managing Director
+1-312-368-2061
or
Media Relations
Brian Bertsch, +1-212-908-0549
brian.bertsch@fitchratings.com