Prudential Financial, Inc. and Constellation Insurance, Inc.: Prudential's reinsurance deal is credit positive - Moody's Global Credit Research

Prudential Financial, Inc. and Constellation Insurance, Inc.: Prudential's reinsurance deal is credit positive

Prudential Financial, Inc. and Constellation Insurance, Inc.: Prudential's reinsurance deal is credit positive - Moody's Global Credit Research
Prudential Financial, Inc. and Constellation Insurance, Inc.: Prudential's reinsurance deal is credit positive
Published May 26, 2023
4 pages (2466 words) — Published May 26, 2023
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Brief Excerpt:

...Information based on US SAP financial statements Source: Company filings and Moody's Investors Service...

  
Report Type:

Issuer Comment

Company:
Issuer
Constellation Insurance, Inc. , Ohio National Life Insurance Company , Pruco Life Insurance Company , Prudential Financial, Inc.
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Constellation Insurance, Inc.: Constellation readies to achieve long-term goals through organic growth and acquisitions - Credit Opinion – 2023/08/18 – US$ 250.00 – ...Our credit view of Constellation Insurance, Inc. (Constellation; senior unsecured debt Ba1 stable) and its key life insurance subsidiaries Ohio National Life Insurance Co. (ONLIC; insurance financial strength (IFS) Baa1 stable) and Ohio National Life Assurance Corporation (ONLAC; IFS Baa1 stable), reflect the company's updated strategy focused on growing mortality, spread business and market risks through organic growth in multiple distribution channels and inforce transactions, proactively managing the risk associated with its inforce variable annuities (VA), and the financial support of Constellation Insurance, LP vis-a-vis its planned capital commitments. Constellation also prudently manages its investments and has improved its capital position. However, our view of Constellation's capital position extends beyond the RBC ratio, and we believe it is weaker when including captives. In addition, Constellation will rename its two core companies, AuguStar Life Insurance Company (AuguStar...

Ohio National Financial Services, Inc.: Update following downgrade to Ba1 senior debt, outlook stable - Credit Opinion – 2022/07/06 – US$ 250.00 – ...Our credit view of Ohio National Financial Services' (Ohio National; senior unsecured debt Ba1 stable) and its key life insurance subsidiaries Ohio National Life Insurance Co. (ONLIC; insurance financial strength (IFS) Baa1 stable) and Ohio National Life Assurance Corporation (ONLAC; IFS Baa1 stable) reflects the acquisition by Constellation Insurance, LP (Constellation) to advance Ohio National's strategy, proactively manage the risk associated with its inforce variable annuities (VA), and provide financial support vis-a-vis its planned capital commitment. Ohio National also prudently manages its investments and has improved its capital position, which has been aided by a recent reinsurance transaction resulting in a material increase in its NAIC RBC ratio. These strengths are offset by the company's weakened market position, and challenges to improve organic net capital generation from the competing demands to support growth plans in its businesses, acquire in-force blocks and manage...

Ohio National Financial Services: Ohio National policyholders' approval of conversion plan is credit positive - Issuer Comment – 2022/03/22 – US$ 200.00 – ...On 18 March, Ohio National Financial Services (ONFS, Baa3 negative) completed a public hearing conducted by the Ohio Department of Insurance (DOI) following ONFS' announcement on 11 March that its eligible members had voted to approve a demutualization transaction and a sale of the company with Constellation Insurance Holdings. The members' approval and completion of the public hearing is credit positive for ONFS because it clears key hurdles for Constellation to acquire ONFS through a sponsored demutualization. Constellation is an insurance holding company backed by Caisse de dTp(t et placement du QuTbec (CDPQ, Aaa stable) and Ontario Teachers' Pension Plan Board (OTPP, Aa1 stable). In a demutualization, a mutual insurance company elects to change its corporate structure whereby its members are compensated for their ownership rights. Under the terms of the conversion plan, Ohio National Mutual Holdings, Inc. (ONMH), a mutual holding company that owns 100% of ONFS, will convert to a stock...

Ohio National Financial Services, Inc.: Focused on growing its protection business, in the midst of a strategic transaction - Credit Opinion – 2021/06/25 – US$ 250.00 – ...Our credit view of Ohio National Financial Services' (Ohio National; senior unsecured debt Baa3 negative) and its key life insurance subsidiaries Ohio National Life Insurance Co. (ONLIC; insurance financial strength (IFS) A3 negative) and Ohio National Life Assurance Corporation (ONLAC; IFS A3 negative) reflects the company's solid in force life business, prudent investment management and improved capital, which has been aided by a rise in equity markets and interest rates. Our view also contemplates the potential of Constellation Insurance Holdings' (Constellation, unrated) $500 million capital commitment, which should help Ohio National fund new sales growth and improve its capitalization and ability to manage funding needs associated with its variable annuity (VA) block in stress scenarios. The continuation of the negative outlook reflects the downward pressure on the company should the announced sponsored demutualization (the transaction) by Constellation, an investment vehicle backed...

Ohio National Financial Services, Inc.: Rating affirmed; negative outlook reflects execution risk of announced demutualization - Credit Opinion – 2021/04/01 – US$ 250.00 – ...Our credit view of Ohio National Financial Services' (Ohio National; senior unsecured debt Baa3 negative) and its key life insurance subsidiaries Ohio National Life Insurance Co. (ONLIC; insurance financial strength (IFS) A3 negative) and Ohio National Life Assurance Corporation (ONLAC; IFS A3 negative) reflects the company's solid in force life business, prudent investment management and improved capital, which has been aided by a rise in equity markets and interest rates. Our view also contemplates the potential of Constellation Insurance Holdings' (Constellation, unrated) $500 million capital commitment, which should help Ohio National fund new sales growth and improve its capitalization and ability to manage funding needs associated with its variable annuity (VA) block in stress scenarios. The continuation of the negative outlook reflects the downward pressure on the company should the announced sponsored demutualization (the transaction) by Constellation, an investment vehicle backed...

Ohio National Financial Services, Inc.: Rating affirmed; negative outlook reflects weaker capital position from financing risks in VA captives - Credit Opinion – 2020/06/25 – US$ 250.00 – ...Our credit view of Ohio National Financial Services' (Ohio National; senior unsecured debt Baa3 negative) and its life insurance subsidiaries Ohio National Life Insurance Co. (ONLIC; insurance financial strength (IFS) A3 negative) and Ohio National Life Assurance Corporation (ONLAC; IFS A3 negative) reflects the positive steps management has taken to improve the company's credit profile, offset by challenges in managing the variable annuity business. The company has improved the tenor of its debt ladder which reduced near-term liquidity risk, raised statutory capital through the sale of a non-core block of life insurance and annuity business, advanced its strategy to grow its protection oriented business, and is actively managing the exposure in its retained variable annuity (VA) GMIB block and hedging strategy which reduces its exposure to a downside scenario. The negative outlook reflects the continued challenges the company's financial profile faces from the competing demands to grow...

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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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Cite this Report

  
MLA:
Moody's Global Credit Research. "Prudential Financial, Inc. and Constellation Insurance, Inc.: Prudential's reinsurance deal is credit positive" May 26, 2023. Alacra Store. Jun 15, 2024. <http://www.alacrastore.com/moodys-credit-research/Prudential-Financial-Inc-and-Constellation-Insurance-Inc-Prudential-s-reinsurance-deal-is-credit-positive-PBC_1369674>
  
APA:
Moody's Global Credit Research. (). Prudential Financial, Inc. and Constellation Insurance, Inc.: Prudential's reinsurance deal is credit positive May 26, 2023. New York, NY: Alacra Store. Retrieved Jun 15, 2024 from <http://www.alacrastore.com/moodys-credit-research/Prudential-Financial-Inc-and-Constellation-Insurance-Inc-Prudential-s-reinsurance-deal-is-credit-positive-PBC_1369674>
  
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