A.M. Best Places Credit Ratings of Jackson National Life Insurance Company and Its Affiliates Under Review with Developing Implications

A.M. Best has placed under review with developing implications the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of Jackson National Life Insurance Company (JNL), its wholly owned subsidiary, Jackson National Life Insurance Company of New York, and its direct parent, Brooke Life Insurance Company (collectively referred to as the Jackson National Group (JNG). Additionally, A.M. Best has placed the Long-Term Issue Credit Ratings (Long-Term IR) of “aa-” on the notes issued under JNL’s funding agreement-backed securities programs and the Long-Term IR of “a” on JNL’s existing surplus notes under review with developing implications. (Please see below for a detailed listing). All companies above are headquartered in Lansing, MI.

The rating actions follow the public announcement by JNL’s parent, Prudential plc (Prudential) [NYSE: PUK], that it intends to demerge its U.K. and Europe business from Prudential, resulting in two separately traded companies. This transaction is subject to various regulatory and organizational dynamics; once completed, M&G Prudential will operate as an independent U.K. & European savings and investment provider, headquartered and listed in London. Separately, Prudential will operate as an international insurance group, continuing to focus on growth in Asia, the United States and Africa while maintaining its headquarters in London.

JNL’s ratings, which were affirmed on Feb. 14, 2018, currently recognize the implicit and explicit support Prudential has provided to the company historically, although JNL has been a significant source of dividends to its parent over the past five-year period. The developing implications status reflects the need for A.M. Best to assess the new ownership structure, including its planned capital structure, strategic and financial plans, and any potential direct impact on the rating fundamentals of JNL. A.M. Best expects to resolve the under review status of the ratings following more in-depth discussions with the company’s management team.

The following Long-Term IRs have been placed under review with developing implications:

Jackson National Life Insurance Company—
-- “a” on $250 million 8.15% surplus notes, due 2027

Jackson National Life Funding, LLC— “aa-” program rating
-- “aa-” on all outstanding notes issued under the program

Jackson National Life Global Funding— “aa-” program rating
-- “aa-” on all outstanding notes issued under the program

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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