OLDWICK: AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” 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). Additionally, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) of “aa-” on the notes issued under JNL’s funding agreement-backed securities programs and the Long-Term IR of “a” on JNL’s surplus notes.
The outlook of these Credit Ratings is stable. All companies are headquartered in Lansing, MI.
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 (ERM).
The rating affirmations also reflect the strength and support provided by the parent, Prudential plc. While JNG’s statutory risk-adjusted capitalization is scored as weak, per Best’s Capital Adequacy Ratio (BCAR), AM Best notes that the company maintains significant voluntary reserves outside of statutory requirements and has strong asset-liability and capital management capabilities that support an adequate balance sheet strength assessment.
While the organization continues to have a leading position in its core variable annuity (VA) market, it also has grown its general account business, specifically through the recent acquisition of John Hancock’s group payout annuity business and a further focus on growing its indexed annuity business. However, AM Best views JNG’s liability profile as more significantly concentrated than its peers and industry benchmarks.
Operating metrics remain favorable on a statutory and IFRS accounting basis through the first half of 2019, and while premiums were relatively flat year over year, the company reported favorable pre-tax operating income.
The following Long-Term IRs have been affirmed with a stable outlook:
Jackson National Life Insurance Company—
— “a” on $250 million 8.15% surplus notes, due 2027
Jackson National Life Funding, LLC— “aa-” program rating
Jackson National Life Global Funding— “aa-” program rating
— “aa-” on all outstanding notes issued under the program.