A.M. Best Places Ratings of MONY Life Insurance Company Under Review With Negative Implications
OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has placed under review with negative implications the financial strength rating (FSR) of A+ (Superior) and issuer credit rating (ICR) of "aa-" of MONY Life Insurance Company (MONY)(New York, NY).
Concurrently, A.M. Best has downgraded the FSR to A (Excellent) from A+ (Superior) and the ICR to "a+" from "aa-" of MONY Life Insurance Companyof America (MLOA)(Phoenix, AZ). The outlook for the FSR is stable, while the outlook for the ICR is negative.
The rating actions follow the announcement that Protective Life Corporation (Protective) [NYSE: PL] (Birmingham, AL) will purchase MONY from AXA S.A. (AXA) (France) [OTC: AXAHY.PK], the ultimate parent of AXA Financial, Inc. (AXA Financial). MONY consists primarily of a closed book of life insurance business; the company no longer markets new policies.
While the MLOA entity is not part of the transaction, significant portions of its business will be coinsured to Protective's life insurance subsidiaries. Although MLOA will continue to sell AXA Financial's variable life and indexed universal life products, A.M. Best does not expect MLOA to be a material contributor to AXA's U.S. operations.
Protective's business model calls for organic growth complemented by select acquisitions, and this transaction is consistent with that strategy. Protective has a long history of successfully acquiring and integrating blocks of businesses, especially seasoned life insurance policies. A.M. Best expects the under review status to be resolved shortly after the closing of the transaction and discussions with management regarding plans for the acquired entity.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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A.M. Best Co.
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