August 19, 2024 Newswires

AM Best Places Credit Ratings of American Heritage Life Insurance Company Under Review With Negative Implications

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) of American Heritage Life Insurance Company (American Heritage) (Jacksonville, FL).

This follows the Aug. 13, 2024, announcement that StanCorp Financial Group, Inc. (StanCorp) and The Allstate Corporation (Allstate) [NYSE: ALL] have entered into a definitive agreement under which StanCorp will acquire Allstate’s employer voluntary benefits business. The Credit Ratings (ratings) of American Heritage have been placed under review with negative implications pending the closure of the sale, which requires regulatory approval.

At the completion of the acquisition, there is a likelihood of negative rating action for American Heritage, potentially of one notch for both its FSR and Long-Term ICR, as a result of it no longer being a part of the Allstate organization and the current lower ratings of StanCorp. This negative implication for American Heritage is not a reflection of a change in its credit worthiness.

The ratings will remain under review until the close of the transaction, which is not expected until the first half of 2025.

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.