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Insurance ratings actions, Sept. 28


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Insurance ratings actions, Sept. 28

S&P Global MarketIntelligence compiles ratings actions in the insurance space daily through 5:30p.m. ET. Actions after 5:30 p.m. ET will be included in the following day'sroundup.

Life and health

FitchRatings affirmed theAAA insurer financial strength rating and F1+ short-term and AA+ long-termissuer default ratings of NewYork Life Insurance Co., as well as the AAA insurer financialstrength rating of New York LifeInsurance & Annuity Corp.

Theoutlook is stable.

Fitchsaid the ratings reflect New York Life's leading market position in the U.S.individual life insurance market, extremely strong capitalization andconservative operating profile. The ratings also consider the company'sabove-average exposure to risky assets and heightened macroeconomic challengesand uncertainty, including declining interest rates and increased financialmarket volatility.

S&PGlobal Ratings affirmedits B corporate credit rating on HRG Group Inc.

Theoutlook remains stable.

S&Psaid the affirmation incorporates the assumption that HRG will ,realizing gross proceeds of about $1.3 billion, and use the net proceeds formaterial debt reduction. However, S&P believes HRG will likely use aportion of the funds to invest in new companies and sectors, such thatloan-to-value can return to the 35% area, in line with rating expectations. Theratings on HRG partly reflect the investment holding company's weak assetdiversity, which will temporarily worsen following the anticipated sale, whenSpectrum Brands Holdings Inc. will constitute, on a pro forma basis, over 90%of the portfolio value. S&P's ratings also reflect HRG's inconsistent trackrecord with respect to investment performance and return.

Thestable outlook reflects S&P's expectation that, notwithstanding regulatorydelays, the sale will close and that HRG will use a substantial amount of theproceeds for debt repayment and at least temporary liquidity enhancement.

Mortgage guaranty

S&Praisedits financial strength and long-term issuer credit ratings on to BBB from BBB-and raised its long-term issuer credit rating on to BB from BB-.

Theoutlook is stable.

S&Psaid the upgrade reflects the relative strengthening of Radian Group'sfinancial risk profile, prospectively aided by a decline in leverage in partdue to execution of a capital management plan, earnings accretion, and reducedreliance on double leverage, improving the quality of capital over the next fewyears. Further supporting the ratings are the company's adequate competitiveposition, reflecting its position as one of the leading mortgage insurers inthe U.S.; relatively diverse base of customers; improved operating performance;and national footprint.

Thestable outlook reflects S&P's expectation of a supportive macroeconomicenvironment, sustainable upper-adequate capitalization, improved leverageposition, and adequate competitive position supported by ongoing compliancewith Private Mortgage Insurer Eligibility Requirements, which should enableRadian Group to write new business and achieve operating metrics in line withthe rating agency's expectations.

S&P Global Ratings andS&P Global Market Intelligence are owned by S&P Global Inc.