OLDWICK, N.J. - (Business Wire) A.M. Best Co. has placed under review with negative implications the financial strength rating of A+ (Superior) and issuer credit ratings of “aa-” of Primerica Life Insurance Company (Boston, MA) and its subsidiaries, National Benefit Life Insurance Company (New York, NY) and Primerica Life Insurance Company of Canada (Mississauga, Ontario) (collectively known as Primerica Life). These actions follow the recent announcement by Citigroup Inc. (NYSE: C) that it has filed a registration statement for an initial public offering (IPO) of Primerica, Inc., the newly established holding company for Primerica Life and affiliates.
A.M. Best expects Citigroup to divest completely of Primerica, Inc. soon after the IPO’s completion, which is planned for early 2010. Prior to the completion of the offering, Primerica, Inc. will enter into four coinsurance agreements with three affiliates of Citigroup, where the vast majority of Primerica Life’s term life insurance policies inforce as of December 31, 2009 will be ceded to Citigroup. The reinsurance transactions will include the transfer of a substantial portion of Primerica Life’s reserves and assets.
The ratings will remain under review pending the successful completion of the IPO and A.M. Best’s discussions with management regarding Primerica Inc.’s future operating projections, investment portfolio and capital structure.
For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
A.M. Best Co.
Analysts
Darian Hala, 908-439-2200, ext. 5802
darian.hala@ambest.com
or
Thomas Rosendale, 908-439-2200, ext. 5201
thomas.rosendale@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
