April 1, 2025 Reinsurance

AM Best Comments on the Credit Ratings of Talcott Financial Group Ltd.’s Subsidiaries Following Announced Reinsurance Transaction With Japan Post Insurance Co., Ltd.

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Talcott Resolution Life Insurance Company, Talcott Life Re, Ltd. (Bermuda) and Talcott Resolution Life and Annuity Insurance Company, collectively referred to as Talcott Financial Group (TFG), remain unchanged with stable outlooks following an announced reinsurance arrangement under which it will reinsure a $3.6 billion block of in-force payout annuities from Japan Post Insurance Co., Ltd. (Japan Post), of which Japan Post will continue to service and administer the policies.

The transaction is effective as of March 31, 2025, and represents TFG’s second transaction with a Japanese domiciled entity. While AM Best analysts expect a minor decline in Best’s Capital Adequacy Ratio (BCAR) for the group from the increase of reserves and accompanying assets that the projected impact is not substantial enough to warrant a negative rating action. Conversely the transaction adds diversification to TFG’s book of business by expanding its market position in a country, which has until recently been largely untapped by international organizations. AM Best will continue to monitor TFG’s operations and this latest transaction for further impacts on its risk-adjusted capitalization, earnings, business profile and 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.