OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) 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, Brook Life Insurance Company. These companies together are referred to as Jackson National Group (JNG). Concurrently, AM Best has affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “a” (Excellent) on the notes issued under JNL’s funding agreement-backed securities program and affirmed the Long-Term IR of “bbb+” (Good) of JNL’s surplus notes. AM Best also has affirmed the Long-Term ICR of “a” (Excellent) of Jackson National Life Global Funding. The outlook of these (Credit Ratings) ratings is stable. In addition, AM Best has assigned a Long-Term ICR of “bbb” (Good) to Jackson Financial Inc. (Delaware). The outlook assigned to this rating is stable. All companies are domiciled in Lansing, MI, unless otherwise specified. (Please see below for a detailed listing of the Long-Term IRs)
The ratings reflect JNG’s balance sheet strength, which AM Best assesses as adequate, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
The ratings also reflect the completed de-merger from Prudential plc and the company’s newly rated parent, Jackson Financial Inc. JNL’s balance sheet will be supported by the new parent through direct capital injections from its recent issuance of debt before the end of 2021. The company expects to target a long-term adjusted RBC ratio of 500-525% during normal market conditions. AM Best expects earnings for the lead rating unit and parent company to remain profitable, with dividends not expected to be paid to its shareholders during 2021 – during the time at which the company continues to execute the recapitalization process.
The ratings considered JNL’s strong market share and distribution capabilities as a leader in the variable annuity and retirement space, which is supported by a quantitative enterprise risk management framework. It is AM Best’s view that the capital profile of the rating group, when fully funded, will be sufficient to grow future business.
The following Long-Term IRs have been affirmed, with stable outlooks:
Jackson National Life Insurance Company—
-- “bbb+” (Good) on USD 250 million 8.15% surplus notes, due 2027
Jackson National Life Global Funding – “a” (Excellent) program rating
-- “a” (Excellent) on all outstanding notes issued under the program
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