AM Best Downgrades Issuer Credit Ratings of Jackson National Life Insurance Company and Its Affiliates; Affirms Financial Strength Rating

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has downgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a” from “a+” and affirmed the Financial Strength Rating of A (Excellent) of Jackson National Life Insurance Company (JNL), its wholly owned subsidiary, Jackson National Life Insurance Company of New York, and its direct parent, Brooke Life Insurance Company. These companies collectively are referred to as the Jackson National Group (JNG). The outlook of the Long-Term ICRs has been revised to stable from negative, while the outlook of the FSR is stable. Additionally, AM Best has downgraded the Long-Term Issue Credit Ratings (Long-Term IR) to “a” from “a+” on the notes issued under JNL’s funding agreement-backed securities program and the Long-Term IR to “bbb+” from “a-” on JNL’s surplus notes. The outlooks of the Long-Term IRs have been revised to stable from negative. All companies are headquartered in Lansing, MI. (Please see below for a detailed listing of the Long-Term IRs).

The ratings reflect JNG’s balance sheet strength, which AM Best categorizes as adequate, as well as its strong operating performance, favorable business profile and very strong enterprise risk management.

The Long-Term ICR downgrade reflects the removal of the rating enhancement previously afforded by JNG’s ultimate parent, Prudential plc (Prudential), due to Prudential’s recent announcement of its intentions to fully separate JNG from the group. The planned separation is expected to commence with a minority initial public offering planned for the first half of 2021, followed by a full divestment over time. JNG’s stock will be listed solely in the United States and the company expects to have a targeted NAIC risk-based capital ratio of between 425-475 percent at the point of the proposed listing. JNG is not expected to remit regular dividends to Prudential in 2020 or 2021 prior to the IPO.

The following Long-Term IRs have been downgraded and the outlooks have been revised to stable from negative:

Jackson National Life Insurance Company—

--to “bbb+” from “a-” on $250 million 8.15% surplus notes, due 2027

Jackson National Life Global Funding— to “a” from “a+” on program rating

--to “a” from “a+” on all outstanding notes issued under the program

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