A.M. Best Places Ratings of Continental Life Insurance Company of Brentwood Group Under Review With Positive Implications
June 16 2011 - 3:58PM
Business Wire
A.M. Best Co. has placed under review with positive
implications the financial strength rating of A- (Excellent) and
issuer credit ratings of “a-” of Continental Life Insurance
Company of Brentwood, Tennessee (CLIC) and its subsidiary,
American Continental Insurance Company (ACIC) (Brentwood,
Tennessee).
This action follows the recent announcement by Genworth
Financial, Inc. (NYSE: GNW) that it has reached an agreement to
sell its Medicare supplement business and related blocks of
in-force business to Aetna Inc. (Aetna) (NYSE: AET). The
purchase price of the transaction is approximately $290 million,
and Aetna will acquire 100% of the stock of CLIC and reinsure
certain related blocks of in-force business.
The under review status with positive implications reflects the
anticipated financial and operational support of the Medicare
supplement companies by Aetna. A.M. Best plans to resolve the under
review status upon the completion of the transaction, which is
expected in the fourth quarter of 2011, subject to regulatory
approval.
The under review status also recognizes the potential for a
favorable change in CLIC and ACIC’s ratings and/or the rating
outlook based on the outcome of A.M. Best’s future discussions with
Aetna’s management team and the close of the transaction.
The principal methodology used in determining these ratings is
Best’s Credit Rating Methodology -- Global Life and Non-Life
Insurance Edition, which provides a comprehensive explanation of
A.M. Best’s rating process and highlights the different rating
criteria employed. Additional key criteria utilized include:
“Understanding BCAR for Life and Health Insurers”; “Rating Members
of Insurance Groups”; “Rating Health Insurance Companies”; and
“Risk Management and the Rating Process for Insurance Companies.”
Methodologies can be found at
www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and
most authoritative insurance rating and information source. For
more information, visit www.ambest.com.
Copyright © 2011 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
Aetna (NYSE:AET)
Historical Stock Chart
From May 2024 to Jun 2024
Aetna (NYSE:AET)
Historical Stock Chart
From Jun 2023 to Jun 2024