OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of Primerica Life Insurance Company (Boston, MA), and its affiliates, National Benefit Life Insurance Company (Long Island City, NY) and Primerica Life Insurance Company of Canada (Mississauga, Ontario), collectively referred to as Primerica Life. Additionally, A.M. Best also has affirmed the Long-Term ICR of “a-” of Primerica, Inc. (Primerica) (headquartered in Duluth, GA) [NYSE:PRI], which is the holding company for the group’s insurance and non-insurance operating companies. A.M. Best also has affirmed the Long-Term Issue Credit Rating of “a-” on $375 million 4.75% senior unsecured notes due 2022 of Primerica. The outlook of these Credit Ratings (ratings) is stable.

Primerica Life’s ratings recognize its status as one of the largest writers of term life insurance in the United States, with its continued strong market position attributable to its dedicated distribution affiliate, Primerica Financial Services, Inc. This integrated distribution and operating platform included approximately 117,000 life agents at the end of 2016. Primerica Life’s business profile in the United States and Canada is further reinforced by its experienced management team, which successfully built and supports its sizable sales force.

Primerica Life’s earnings have been consistent with A.M. Best’s expectations, as the group has generated solid levels of GAAP and statutory net income as margins have benefited from favorable mortality experience relative to historical pricing expectations. Statutory net income also has benefited from the inclusion of ongoing income related to the reinsurance transactions entered into at the time of Primerica’s initial public offering in 2010, as statutory accounting rules require that the gain on the reinsured business be deferred and recognized in income as actual experience emerges. A.M. Best also notes that Primerica Life’s GAAP financial leverage and interest coverage ratios are within A.M. Best’s guidelines for its current rating level.

The level of Primerica Life’s risk-adjusted capitalization, as defined by Best’s Capital Adequacy Ratio (BCAR), is sufficient to support its current business and insurance risks. A.M. Best notes that risk-adjusted capitalization had been declining prior to 2015, driven primarily by significant dividends to the holding company. However, risk-adjusted capitalization has stabilized over the past two years. Going forward, A.M. Best expects risk-adjusted capitalization ratios to continue to remain relatively stable. A.M. Best also notes that Primerica Life has relied heavily in recent years on captive reinsurance to fund its Regulation XXX reserves associated with term life insurance, which in turn has benefited the group’s risk-adjusted capitalization.

Offsetting these positive rating factors are Primerica Life’s somewhat narrow business profile and aggressive capital management strategy. As noted above, Primerica Life has relied heavily on captive reinsurance to fund its XXX reserves. As part of its assessment of a life insurance company’s balance sheet strength, A.M. Best considers not only the capital adequacy ratios, but also the quality of capital supporting such ratios.

A.M. Best believes that the quality of capital for an insurance operating company that has ceded XXX or AXXX reserves to a domestic or offshore captive is not as strong as for an operating company with similar risk-adjusted capital ratios that self-funds these reserves. In addition, while A.M. Best expects Primerica Life to maintain an underlying trend of statutory profitability, statutory capital growth of the insurance operating companies likely will be constrained by continued aggressive dividend payments to Primerica. Additionally, within the insurance business unit there is essentially a monoline product approach with an exclusive focus on term life products.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

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A.M. Best

Igor Bass, +1-908-439-2200, ext. 5109

Financial Analyst

[email protected]

or

Thomas Rosendale, +1-908-439-2200, ext. 5201

Director

[email protected]

or

Christopher Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations

[email protected]

or

Jim Peavy, +1-908-439-2200, ext. 5644

Director, Public Relations

[email protected]

Source: A.M. Best

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “aa” (Superior) to the recently announced $1.25 billion, 6.05% surplus notes, due 2056, issued by The Northwestern Mutual Life Insurance Company (Northwestern Mutual) (Milwaukee, WI). The outlook assigned to the Credit Rating (rating) is stable.

The proceeds from the surplus notes offering will be used for general corporate purposes. The newly issued surplus notes will remain subordinated to policyowner liabilities. The company’s unadjusted financial leverage remains low at 20% with favorable interest coverage over 3x post policyholder dividends, as calculated by AM Best, which is considered within guidelines for the assigned rating. Northwestern Mutual’s existing ratings continue to reflect its balance sheet strength, which AM Best assesses as strongest, as well as its very strong operating performance, very favorable business profile and very strong enterprise risk management.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Kevin Varvaro
Senior Financial Analyst
+1 908 882 2410
[email protected]

Edward Kohlberg
Director
+1 908 882 1979
[email protected]

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
[email protected]

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
[email protected]

Source: A.M. Best Rating Services, Inc.