AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of AXA Equitable Life Insurance Company and Most of Its Life Subsidiaries
In
The ratings reflect AXA Equitable’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
AXA Equitable’s rating affirmations are attributable to its very strong and improved risk-adjusted capitalization, strong financial flexibility, sophisticated risk management practices and its position as a leading variable annuity (VA) and universal life writer and global asset manager. AM Best notes that in advance of AXA Equitable Holdings, Inc.’s partial IPO earlier this year,
AM Best notes the company’s action pre-IPO to recapture its
While AXA Equitable intends to maintain its very strong risk-adjusted capital profile going forward, it remains exposed to equity market pressures on both sides of the balance sheet. These pressures emanate from its investment in AB and through its variable insurance products with guaranteed benefits, as well as potential volatility in revenue from asset fees as a result of market value changes in its large separate account book of business and derivative activity. AM Best notes that the exposure from
AM Best notes that a deviation of methodology applies to the determination of the ratings of the following four subsidiaries of AXA Equitable. These subsidiaries were afforded rating enhancement from AXA Equitable despite the fact that it is not currently the lead rating unit as defined by Best’s Credit Rating Methodology (BCRM).
The FSR of A (Excellent) and the Long-Term ICR of “a” have been affirmed and assigned a stable outlook for
The FSR of B+ (Good) and the Long-Term ICR of “bbb-” have been affirmed and assigned a stable outlook for
The FSR of A (Excellent) and the Long-Term ICR of “a” have been affirmed and a stable outlook assigned for
The ratings have been removed from under review with developing implications and the FSR has been downgraded to B++ (Good) from A- (Excellent) and the Long-Term ICR downgraded to “bbb” from “a-” and assigned a stable outlook for
The following Long-Term IR has been removed from under review with developing implications, affirmed and assigned a stable outlook:
-- “bbb+” on
The following Long-Term IRs have been assigned with a stable outlook:
AXA Equitable Holdings, Inc.
-- “bbb+” on
-- “bbb+” on
-- “bbb+” 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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2018 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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