Jackson National Life Insurance Company Ratings Affirmed by AM Best
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) for Jackson National Life Insurance Company (JNL) along with its wholly owned subsidiary, Jackson National Life Insurance Company of New York, and its direct parent, Brooke Life Insurance Company. These entities are collectively known as the Jackson National Group (JNG). The affirmations provide a stable outlook for their FSR, while the Long-Term Issuer Credit Ratings (Long-Term ICRs) are rated as “a” (Excellent) with a positive outlook.
Positive Market Perception and Ratings Outlook
The Long-Term Issue Credit Rating (Long-Term IR) assigned to JNL’s funding agreement-backed securities program has also been affirmed at “a” (Excellent), alongside a Long-Term IR of “bbb+” (Good) for JNL’s surplus notes. The positive outlooks signify strong performance and continued confidence in Jackson National and its affiliates.
Strong Balance Sheet Supports Ratings
The ratings are indicative of the group’s solid balance sheet. AM Best evaluates JNG’s balance sheet strength as strong, thanks to factors such as high risk-adjusted capitalization validated by Best's Capital Adequacy Ratio (BCAR). It is noted that dividend upstreaming to the parent company and effective asset-liability management are vital attributions to the positive ratings.
Sales Performance and Earnings Growth
In recent times, JNG has shown premium growth largely driven by its registered indexed-linked annuity business segment, enhancing its sales diversity. While GAAP earnings have remained favorable, the statutory earnings for the year have faced some volatility. However, the expectations for the group remain optimistic, with an anticipated increase in statutory capital driven by favorable organic earnings.
Strategic Plan Execution and Market Presence
Continued success in executing its strategic plan reflects the overall stability of Jackson National. With a strong business profile, the group enjoys notable market share and distribution capabilities, establishing itself as a leader in the annuity and retirement sectors. The recognition of the group’s efforts in newer registered indexed-linked annuity products has further solidified its market position.
Summary of Affirmed Ratings
The following Long-Term IRs have been affirmed, confirming positive outlooks:
Jackson National Life Insurance Company—
-- “bbb+” (Good) on USD 250 million, 8.15% surplus notes, due 2027
Jackson National Life Global Funding – “a” (Excellent) program rating
-- “a” (Excellent) on all outstanding notes issued under the program
About AM Best
AM Best is a leading global credit rating agency, news publisher, and provider of data analytics focused on the insurance industry. With headquarters in the United States, AM Best operates in over 100 countries and has regional offices in various key locations. The agency aims to deliver valuable insights into the financial health and creditworthiness of insurance companies worldwide.
Frequently Asked Questions
What is the significance of JNL's ratings from AM Best?
The strong ratings reflect AM Best’s confidence in JNL’s financial health and operational performance, indicating stability and reliability in the insurance market.
What does a rating of A (Excellent) mean?
A rating of A (Excellent) suggests a strong ability to meet ongoing insurance obligations, signifying a robust financial position.
How does AM Best assess JNG's business profile?
AM Best evaluates JNG's business profile as strong due to its significant market share and leadership in annuity and retirement products.
What factors contribute to JNL's positive ratings outlook?
The positive outlook is supported by the group's solid earnings potential, effective asset management, and strategic growth initiatives.
Where can I find more information about AM Best and their rating methodology?
For more detailed insights, you can visit AM Best’s website to access comprehensive resources about their credit ratings and methodology.
