AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of F&G Reinsurance Ltd. (F&G Re) (Bermuda).
The under review status follows the recent announcement that Fidelity National Financial, Inc. (FNF) [NYSE: FNF] and its subsidiary Fidelity & Guaranty Life Insurance Company (F&G), a leading provider of annuities and life insurance, have entered into a definitive agreement to sell F&G Re to Aspida Holdings Ltd., an indirect subsidiary of Ares Management Corporation.
In connection with the transaction, F&G and Aspida (via F&G Re) will enter into a flow reinsurance agreement with respect to F&G's multi-year guaranteed annuity products on a coinsurance fund withheld basis.
The under review status partially reflects the fact that F&G Re is no longer strategically important to F&G. The ratings will remain under review with developing implications until the close of the transaction and a review by AM Best of the post-transaction details. The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions, including regulatory approval.
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