AM Best Affirms Credit Ratings of Equitable Holdings, Inc. and Its Life Subsidiaries
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of
The ratings reflect Equitable Life Group’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Equitable Life Group’s ratings are attributable to its appropriate level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), While there could be some volatility year-over-year, AM Best would not anticipate dividend payouts to be a drag on surplus. The overall balance sheet strength continues to be supported by the group’s strong financial flexibility and its well-developed and sophisticated risk management practices, which provide confidence in the group’s capital management approach, as well as its position among the market leaders in variable annuities (VA), variable universal life and 403(b) retirement annuities. In addition, the group maintains a dynamic hedging strategy to support its
Additionally, the group has consistently recorded favorable operating earnings in the last several years on a non-GAAP operating basis with some recent volatility. The after-tax non-GAAP financial measure is used to evaluate financial performance on a consolidated basis, determined by making certain adjustments to consolidated after-tax net income attributable to holdings that relate to derivative positions, which has continued to be a large source of volatility in net income. Consolidated financial leverage at Equitable Holdings, Inc. has increased slightly due to additional issuance of senior debt but is still considered to be moderate. AM Best notes that the holding company maintains access to a contingent capital facility, which further enhances the group’s positive financial flexibility.
The ratings of Equitable Financial Life and Annuity reflect its balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate ERM.
The following Long-Term IR has been assigned with a stable outlook:
Equitable Holdings, Inc—
-- “bbb+” (Good) on
The following Long-Term IRs have been affirmed with stable outlooks:
Equitable Financial Life Global Funding— “a+” (Excellent) program rating
-- “a+” (Excellent) on all outstanding notes issued under the program
The following Long-Term IRs have been affirmed with stable outlooks:
Equitable Holdings, Inc—
-- “bbb+” (Good) on
-- “bbb+” (Good) on
-- “bbb+” (Good) on
-- “bbb+” (Good) on
-- “bbb-” (Good) on
-- “bbb-” (Good) on
-- “bbb-” (Good) on
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
Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Source: AM Best
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