AM Best Places Credit Ratings of Prudential Retirement Insurance and Annuity Company Under Review With Positive Implications
AM Best has placed Prudential Retirement Insurance and Annuity Company's (PRIAC) Financial Strength Rating of A+ and Long-Term Issuer Credit Rating of 'aa-' under review with positive implications. This follows the announcement of Empower Retirement's acquisition of Prudential's full-service retirement business, including PRIAC, which manages over 4,300 plans and $314 billion in assets for approximately 4 million participants. The positive outlook is based on the expected financial strength from Great-West Lifeco Inc., Empower's parent company. The transaction is projected to close in Q1 2022.
- Positive implications on ratings due to expected benefits from Empower Retirement's financial strength.
- Acquisition of full-service retirement business adds substantial assets and participant base.
- None.
AM Best has placed under review with positive implications the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of Prudential Retirement Insurance and Annuity Company (PRIAC), headquartered in Newark, NJ.
PRIAC’s Credit Ratings (ratings) were placed under review with positive implications following the announcement that Empower Retirement (legally known as Great-West Life & Annuity Insurance Company) and Prudential Financial, Inc. (Prudential) [NYSE: PRU] have entered into a definitive agreement for Empower Retirement to acquire Prudential’s full-service retirement business including PRIAC. Prudential’s full-service retirement recordkeeping business comprises more than 4,300 workplace savings plans, through which approximately four million plan participants have saved
The positive implications reflect AM Best’s expectation that PRIAC will benefit from the financial strength of Empower Retirement’s ultimate parent, Great-West Lifeco Inc., as it becomes integrated into its existing retirement business. The transaction is expected to close during the first quarter of 2022.
The ratings will remain under review until the transaction closes, all customary regulatory approvals are received and AM Best evaluates PRIAC’s role in the Empower organization.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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FAQ
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