New York, January 19, 2023 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings -and other ratings that are associated with the same analytical units for the rated entity(entities) listed below.
The review was conducted through a portfolio review discussion held on 12 January 2023 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. A possible outcome from periodic reviews is a referral of a rating to a rating committee.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.
Key Rating Considerations
The principal methodology used for the rated entities listed below was Life Insurers Methodology published in January 2023. Please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.
Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.
Life Insurers Methodology
Market Position and Brand: Market position and brand are key factors representing a company's ability to develop and sustain competitive advantages in its chosen markets. Metrics can include but are not limited to relative market share, absolute size, and position within selected markets.
Distribution: A company's access to distribution channels, its ability to control those channels, and its relationships with producers affect its creditworthiness and standing in the market. Metrics can include but are not limited to proportion of captive or controlled distribution, and number of distinct distribution channels.
Product Focus and Diversification: A company's chosen business lines and product offerings have a major influence on its risk profile and creditworthiness because product segments have distinct volatility and competitive attributes. Metrics can include but are not limited to low-risk reserves as a percentage of total reserves, product mix and features, and number of distinct product lines.
Asset Quality: Life insurers mainly invest in high-quality liquid assets, although to improve investment yields and/or match guarantees embedded in their liabilities, many companies allocate a portion of their investments to higher-risk assets. Metrics can include but are not limited to high-risk assets and goodwill & intangibles as percentages of equity, as well as investment concentrations and portfolio liquidity.
Capital Adequacy: An insurer's capital adequacy determines the extent to which it can absorb losses stemming from business and financial risks, including from stress scenarios. Metrics can include but are not limited to adjusted shareholders' equity as a percentage of assets, regulatory capital ratios, insurers' own capital adequacy metrics, and output from Moody's Capital Tool.
Profitability: An insurer's earnings capacity, including earnings quality and sustainability, shows how readily it can meet policy and other financial obligations and generate capital internally. Metrics can include but are not limited to return on capital, return on equity, return on assets, and volatility of such returns.
Liquidity and Asset/Liability Management: A company's asset liability management and its associated liquidity are critical risk factors in the confidence-sensitive life insurance market. Metrics can include but are not limited to liquid assets as a percentage of liquid liabilities, duration and cash flow matching, and economic and market scenario testing.
Financial Flexibility: Insurers benefit from the ability to raise capital externally for growth or acquisitions or to meet unexpected financial demands. Metrics can include but are not limited to adjusted financial leverage, total leverage, earnings coverage, and cash flow coverage, as well as holding company liquidity and access to committed credit facilities.
Other Rating Considerations: In addition to the factors discussed above, other factors such as management, enterprise risk, accounting policies and disclosures, sovereign and regulatory environment, and explicit or implicit support can affect the insurance financial strength ratings of insurance operating companies.
Instrument Notching Considerations: The ratings for debt and preferred stock instruments issued by insurance firms are generally notched down from the insurance financial strength ratings based on the issuing entity, jurisdiction, seniority, collateral, and other features of the instruments.
• Aflac Incorporated
• Allianz Life Insurance Co of North America
• Americo Life, Inc.
• Ameriprise Financial, Inc
• Athene Holding Ltd.
• AXA Financial, Inc.
• Brighthouse Financial, Inc.
• Canada Life Assurance Company (The)
• CF Bermuda Holdings Limited
• CNO Financial Group, Inc.
• Constellation Insurance, Inc.
• Corebridge Financial, Inc.
• Empower Annuity Insurance Company of America
• Equitable Holdings, Inc.
• F&G Annuities & Life, Inc.
• Genworth Life Insurance Company
• Global Atlantic (Fin) Company
• Global Atlantic Assurance Limited
• Global Atlantic Re Limited
• Globe Life Inc.
• Guardian Life Insurance Company of America
• Hartford Life & Accident Insurance Company
• Horace Mann Life Insurance Company
• Jackson Financial, Inc.
• John Hancock Global Funding II
• John Hancock Life Insurance Company
• Lincoln National Corporation
• Manufacturers Life Insurance Company (The)
• Massachusetts Mutual Life Insurance Company
• MetLife, Inc.
• Monumental Global Funding Limited
• Mutual of Omaha Insurance Company
• Nationwide Financial Services, Inc.
• New York Life Insurance Company
• NLV Financial Corporation
• Northwestern Mutual Life Insurance Company
• Pacific LifeCorp
• Penn Mutual Life Insurance Company
• Primerica, Inc.
• Principal Financial Group, Inc.
• Protective Life Corporation
• Prudential Financial, Inc.
• Reliance Standard Life Insurance Company
• Securian Financial Group, Inc.
• Security Life of Denver Insurance Company
• Standard Insurance Company
• State Farm Life and Accident Assurance Co.
• State Farm Life Insurance Company
• Sun Life Assurance Company of Canada
• Symetra Financial Corporation
• Talcott Resolution Life, Inc.
• Teachers Ins. and Annuity Assoc. of America
• Thrivent Financial for Lutherans
• Transamerica Capital II
• Transamerica Capital III
• Transamerica Financial Life Insurance Company
• Transamerica Life Insurance Company
• TruStage Financial Group, Inc.
• United Insurance Company of America
• Unum Group
• USAA Life Insurance Company
• Voya Financial, Inc.
• Western & Southern Financial Group, Inc.
• Zurich American Life Insurance Company
The principal methodology used for the rated entity listed below was Mortgage Insurers Methodology published in August 2022. Please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.
Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.
Mortgage Insurers Methodology
Market Position: Market position is a key factor representing a company's ability to develop and sustain competitive advantages in its chosen markets. Metrics can include but are not limited to market share of new insurance written, prime loans as a percentage of risk-in-force, client concentration, and geographic concentration.
Housing Market Attributes: Housing market attributes such as regulation, mortgage loan characteristics, home price appreciation, and macroeconomic trends have a major influence on a mortgage insurer's credit profile. Metrics can include but are not limited to demand for mortgage insurance, generic mortgage loan attributes, and housing market conditions.
Capital Adequacy: A mortgage insurer's capital adequacy determines the extent to which it can fund growth and absorb unfavorable deviations in losses and operating results, including in stress scenarios. Metrics can include but are not limited to adjusted risk-to-capital ratio, which can incorporate nominal risk-in-force for prime and non-prime mortgages, statutory capital, regulatory capital ratios, and insurers' own capital adequacy metrics.
Profitability: A financial guarantor's earnings capacity, including earnings quality and sustainability, shows how readily it can meet policy and other financial obligations and generate capital internally. Metrics can include but are not limited to combined underwriting ratio, return on capital, return on equity, and return on revenue.
Financial Flexibility: Mortgage insurers benefit from the ability to raise capital externally for growth or acquisitions or to meet unexpected financial demands. Metrics can include but are not limited to adjusted financial leverage, total leverage, cash flow coverage, and earnings coverage, as well as holding company liquidity and access to committed credit facilities.
Other Rating Considerations: In addition to the factors discussed above, other factors such as management, enterprise risk, accounting policies and disclosures, sovereign and regulatory environment, and explicit or implicit support can affect the insurance financial strength ratings of insurance operating companies.
Instrument Notching Considerations: The ratings for debt and preferred stock instruments issued by insurance firms are generally notched down from the insurance financial strength ratings based on the issuing entity, jurisdiction, seniority, collateral, and other features of the instruments.
• Genworth Holdings, Inc.
The principal methodology used for the rated entities listed below was Property and Casualty Insurers Methodology published in January 2023. Please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.
Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.
Property and Casualty Insurers Methodology
Market Position, Brand and Distribution: Market position, brand and distribution are key factors representing a company's ability to develop and sustain competitive advantages in its chosen markets. Metrics can include but are not limited to relative market share, underwriting expense ratio, and diversity of distribution channels.
Product Focus and Diversification: A company's chosen business lines have a major influence on its risk profile and creditworthiness because business classes have distinct volatility and competitive attributes. Metrics can include but are not limited to product line and geographic diversification, relative volatility of product lines, and breadth and depth of markets served.
Asset Quality: P&C insurers mainly invest in high-quality liquid assets, given the uncertain timing and magnitude of their liability payments, although companies often allocate a portion of their investments to higher-risk assets. Metrics can include but are not limited to high-risk assets, reinsurance recoverables and goodwill & intangibles as percentages of equity, as well as investment concentrations and portfolio liquidity.
Capital Adequacy: An insurer's capital adequacy determines the extent to which it can absorb losses stemming from business and financial risks, including from stress scenarios. Metrics can include but are not limited to gross underwriting leverage, regulatory capital ratios, insurers' own capital adequacy metrics, and output from Moody's Capital Tool.
Profitability: An insurer's earnings capacity, including earnings quality and sustainability, shows how readily it can meet policy and other financial obligations and generate capital internally. Metrics can include but are not limited to combined underwriting ratio, return on capital, return on equity, return on revenue, and volatility of such returns.
Reserve Adequacy: Our estimate of the redundancy or deficiency of an insurer's loss and loss adjustment expense reserves helps shape our assessment of its reported earnings and capitalization. Metrics can include but are not limited to yearly and weighted average loss development as a percentage of reserves, funding ratio of latent liabilities, and various actuarial estimates.
Financial Flexibility: Insurers benefit from the ability to raise capital externally for growth or acquisitions or to meet unexpected financial demands. Metrics can include but are not limited to adjusted financial leverage, total leverage, earnings coverage, and cash flow coverage, as well as holding company liquidity and access to committed credit facilities.
Other Rating Considerations: In addition to the factors discussed above, other factors such as management, enterprise risk, accounting policies and disclosures, sovereign and regulatory environment, and explicit or implicit support can affect the insurance financial strength ratings of insurance operating companies.
Instrument Notching Considerations: The ratings for debt and preferred stock instruments issued by insurance firms are generally notched down from the insurance financial strength ratings based on the issuing entity, jurisdiction, seniority, collateral, and other features of the instruments.
• AIG Life Holdings, Inc.
• American Bankers Life Assurance Co of Florida
• TruStage Financial Group, Inc.
The principal methodology used for the rated entity listed below was Securities Industry Service Providers Methodology published in November 2019. Please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.
Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.
Securities Industry Service Providers Methodology
Scale: the absolute magnitude of a securities industry service provider's pre-tax earnings can be an important indicator of its franchise strength and competitive position within its line(s) of business. Scale can be an important distinguishing factor concerning the size and quality of its customer base and its ability to provide value-added services.
Profitability: the strength and stability of a securities industry service provider's profitability can be important indicators of its ability to adapt to changes in economic and business environments, and the level and sustainability of its competitive position, including its ability to sufficiently reinvest in human capital, technology, and other important contributors to sustained success.
Leverage and coverage: a securities industry service provider's cash flow in relation to interest and to total debt are important indicators of its ability to service debt, finance its business, and attract capital needed for investments and repaying maturing debt.
Operating environment: a security industry service provider's operating environment can have an important bearing on its long-term viability. Relevant economic, judicial/regulatory, institutional and general operating conditions may impact a securities industry service providers' creditworthiness.
Other qualitative considerations: important other qualitative considerations that can affect a securities industry service provider's creditworthiness include the extent of its business diversification, the level of opacity and complexity in its activities, its liquidity management, and its corporate behavior.
Support and structural analysis: a security industry service provider's rating may be positively affected by the capacity and willingness of its affiliates and public bodies to provide it with support.
Sovereign or parent constraint: a security industry service provider's rating may be negatively affected by a constraint related to the relatively lower creditworthiness of its sovereign or parent.
Instrument level rating considerations: individual instrument ratings also factor in notching considerations based on the seniority and collateral of the instruments.
• Ameriprise Financial, Inc
This announcement applies only to Rated Entities with EU rated, UK rated, EU endorsed and UK endorsed ratings. Rated Entities, with Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced herein to the extent necessary, if they are part of the same analytical unit.
Please see the Issuer page on https://ratings.moodys.com for each of the ratings covered, most updated credit rating action, rating history, and Credit Rating action Press Release including the rating rationale and factors that could lead to a rating upgrade or downgrade.
This publication does not announce a credit rating action.
For any credit ratings referenced in this publication, please see the issuer/deal page on https://ratings.moodys.com
for the most updated credit rating action information and rating history.
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