AM Best Comments on Credit Ratings of Talcott Resolution Life, Inc. and Its Subsidiaries Following Acquisition Announcement

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has commented that the Credit Ratings (ratings) of Talcott Resolution Life, Inc. (Delaware) and its insurance subsidiaries, Talcott Resolution Life Insurance Company (Windsor, CT) and Talcott Resolution Life and Annuity Insurance Company (Windsor, CT) (collectively known as Talcott Resolution), remain unchanged following the announcement that Sixth Street, a leading global investment firm with over $50 billion in assets under management and committed capital, has entered into a definitive agreement to acquire Talcott Resolution from a consortium of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group Limited, Pine Brook, J. Safra Group and The Hartford Financial Services Group. The Long-Term Issue Credit Ratings of Talcott Resolution Life, Inc. also remain unchanged. The outlook of these ratings remains stable.

Talcott Resolution currently oversees over $90 billion in liabilities and surplus primarily consisting of fixed annuities, variable annuities and company-owned and bank-owned life insurance for approximately 900,000 customers. AM Best believes that Talcott Resolution will remain well-capitalized and will maintain its current business strategy of growing its platform by providing risk-transfer solutions to the insurance industry through reinsurance or legal entity acquisitions. The transaction is expected to close in the second quarter of 2021, subject to regulatory approvals and other customary closing conditions.

Talcott Resolution’s variable annuity business continues to show performance in line with reserve assumptions, despite material impacts from interest rate- and equity market-related risks in recent periods. In addition, Talcott Resolution’s general account investment portfolio performed well over the past year with only a minimal amount of impairments and downward ratings migration as a result of the Covid-19 pandemic.

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