AM Best has maintained the Financial Strength Rating of A+ and the Long-Term Issuer Credit Ratings of “aa-” for the principal life insurance subsidiaries of Protective Life Corporation (Protective). This decision follows the recent announcement of a reinsurance agreement with Resolution Life Group Holdings Ltd. (Resolution Life). According to the rating agency, the deal involves Protective ceding $9.7 billion in reserves to Resolution Life.
The ratings reflect AM Best’s evaluation of Protective’s financial stability and ability to meet its obligations to policyholders. The reinsurance transaction, while significant in size, is not seen as a material factor impacting Protective’s overall credit profile at this time, AM Best indicated. The agency’s analysis likely considered the financial strength of Resolution Life, the terms of the reinsurance agreement, and the impact on Protective’s capital position and risk management strategies.
Further details about the agreement and AM Best’s full commentary are expected to be released in the coming days. The reinsurance deal is likely to be scrutinized closely by financial analysts and investors to assess its long-term implications for both Protective and Resolution Life.
