OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with positive implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” of Life Insurance Company of North America (LINA) (Philadelphia, PA) and Cigna Life Insurance Company of New York (CLICNY) (New York, NY). The rating actions follow the recent announcement by Cigna Corporation (Cigna) [NYSE: CI] that it has signed a definitive agreement to sell its group life and disability insurance business to New York Life Insurance Company.
On Dec. 18, 2019, Cigna announced the sale of its group insurance operations, which includes Life Insurance Company of North America and Cigna Life Insurance Company of New York, in a transaction valued at $6.3 billion. Cigna is expected to utilize the proceeds of the transaction to pay down debt and for share repurchases, with exact amounts to be determined. The transaction is expected to close in 2020 and is subject to regulatory approvals.
The positive implications reflects the financial strength of the acquirer, New York Life Insurance Company. The ratings will remain under review pending completion of the transaction and discussions with the new parent.
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