March 13, 2025 Reinsurance

AM Best Comments on Credit Ratings of Protective Life Corporation’s Key Subsidiaries Following Announced Reinsurance Agreement with Resolution Life Group Holdings Ltd.

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has commented that the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of the primary life insurance subsidiaries of Protective Life Corporation (headquartered in Birmingham, AL), collectively known as Protective, remain unchanged following an announced reinsurance arrangement under which it will cede $9.7 billion of reserves to Resolution Life Group Holdings Ltd. Protective will retain administration of the underlying policies.

The transaction is expected to close in the second quarter 2025, subject to customary closing conditions. This ceded business is associated with several products within Protective’s operations and is anticipated to increase its capitalization and provide lower exposure to long-tailed liabilities. While there is no immediate Credit Ratings impact, AM Best views this as potentially having a favorable impact on Protective’s overall risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and it will be considered as part of the ongoing review.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) of the following primary life insurance subsidiaries of Protective remain unchanged:

Protective Life Insurance Company
Protective Life and Annuity Insurance Company
West Coast Life Insurance Company
MONY Life Insurance Company

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.