A.M. Best Places Credit Ratings of Liberty Life Assurance Company of Boston Under Review With Developing Implications

A.M. Best has placed under review with developing implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Liberty Life Assurance Company of Boston (Liberty Life) (Dover, NH).

The Credit Rating (rating) actions follow the announcement on Jan. 19, 2018, that Liberty Life’s ultimate parent, Liberty Mutual Holding Company, Inc. (Liberty Mutual), has entered into a definitive agreement to sell Liberty Life to Lincoln National Corporation (Lincoln), with Protective Life Insurance Company coinsuring the life and annuity blocks. The developing implications reflect the need for A.M. Best to evaluate Lincoln’s plans to integrate Liberty Life into existing insurance operations, as well as to ensure that risk-adjusted capitalization is maintained at levels in line with its current ratings. Additionally, A.M. Best needs to gain greater insight into the overall impact on the company’s business profile, new business writings and operating performance. Liberty Life’s current ratings also reflect explicit support in the unconditional guarantee in place from its ultimate parent, Liberty Mutual.

The transaction is expected to close in the second quarter of 2018, pending regulatory approval and customary closing conditions. The ratings will remain under review until the close of the transaction, at which time A.M. Best will meet with the new management team to evaluate Lincoln’s plans for Liberty Life and to assess the potential impact on the company’s operating fundamentals. The ratings of Liberty Mutual are unaffected by this rating action.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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