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Dear Financial Professional:
On February 26, Standard &
Poor’s released a lengthy report on the life insurance
industry. In this report, S&P announced ratings actions on 10
major insurers.
Although it lowered the Financial Strength ratings of the core
insurance operating companies of Prudential Financial, Inc. from “AA”
to “AA-,” we are pleased that S&P confirmed our capital
and liquidity are consistent with our “AA” financial
strength ratings objectives for our insurance companies.
More notably, S&P changed our outlook to
“stable.” We believe that the strength of our
business mix and its diversity across geographic, business, and equity
market risks contributed to this change.
S&P also confirmed the senior long-term debt rating for Prudential
Financial, Inc. at “A”, and changed the outlook from
“negative” to “stable” and affirmed our
commercial paper ratings for Prudential Financial, Inc. at
“A1” and Prudential Funding, LLC at “A1+”.
Below is a summary of some of the actions taken by S&P for us and
other companies.
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.
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TO
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FROM
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MetLife
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AA- (Outlook
Negative)
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AA (Outlook
Stable)
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Pacific
Life
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AA- (Outlook
Negative)
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AA (Outlook
Stable)
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Prudential
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AA- (Outlook
Stable)
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AA (Outlook
Negative)
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Lincoln
National
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AA- (Outlook
Stable)
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AA (Stable)
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Protective
Life
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AA- (Outlook
Stable)
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AA (Stable)
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Hartford
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A+ (Watch
Negative)
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AA- (Watch
Negative)
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Midland
National
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A+ (Outlook
Stable)
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AA- (Stable)
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Genworth
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A (Outlook
Stable)
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AA- (Outlook
Negative)
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Security
Mutual Life of NY
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A- (Outlook
Negative)
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A+ (Outlook
Negative)
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Conseco
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BB- (Outlook
Negative)
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BB+ (Outlook
Negative)
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Our
businesses are competitive in their markets, our liquidity is ample,
and our sources of earnings are diverse. Despite these
challenging economic conditions, we remain committed to meeting
consumers’ life insurance needs, including products that offer
lifetime guarantees.
I thank you for your continued business.
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