A.M. Best Affirms Ratings of Jackson National Life Insurance Company and Its Affiliates

A.M. Best Co. has affirmed the financial strength rating (FSR) of
A + (Superior) and issuer credit ratings of “AA” Jackson National
Life Insurance Company, its wholly owned subsidiary, Jackson National
Life Insurance Company of New York (together known as JNL) and its
Direct from their parents, Brooke Life Insurance Company. In addition, A.M. Best
has affirmed the debt ratings of “AA” in funding JNL
According bond securitisation (FABS) programs and outstanding notes
issued in this regard. A.M. Best has also affirmed the debt rating of “a +”
JNL in the current $ 250 million surplus of 8.15% notes. The outlook for
All ratings is stable. All these companies are based in
Lansing, MI. (See below for a detailed listing of the company’s debt
ratings.)

The ratings reflect the JNL strong market positions in the
annuity each scenario, its strong risk-adjusted capitalization and
consistently profitable operations. The company market positions are
support from its various distribution channels, wholesale strong
capabilities and low-cost expense structure, which have enabled it to
become one of the nation’s largest for each of the writers annuities.

JNL U.S. is the operational arm of Prudential plc, one of the UK
insurers and largest among the world’s leading financial services
organizations. Outside the UK, JNL is one of the
group’s three main businesses, and Prudential plc has historically
supported through capital injections and internal
reinsurance. In recent years, JNL has delivered double-digit sales
growth, as well as the strengths and GAAP earnings, which have
enabled the company to finance organic growth at the same time
contributing dividends to its parent company.

Partially offset these positive rating factors is JNL
liability profile, which remains less diversified than many of their
similarly rated peers. Because of its responsibility annuity concentration, JNL
is exposed to interest rate risk, especially when rates are
increasingly, as 25% of its fixed annuity book is exposed to potential
surrender at book value without charge or surrender market value
adjustment. JNL growing portfolio of equities also exposes
the equity market risk in the form of product and guarantees
the volatility of fee income. However, A.M. Best notes that JNL
disciplined asset-liability management practices and programs coverage
serve to mitigate interest rate risk and capital under a wide range
of economic scenarios.

In addition, JNL maintains an above average allocation of “bbb”
and rated below investment grade bonds in your portfolio
(a combined total of 35% of assets invested), hence, assuming a
higher level of credit risk that most of its industry peers. Although
considerable capital losses were conducted between 2001 and 2003 (almost U.S. $ 1
million), JNL was able to successfully manage through the credit
recession, and A.M. Best expects the positive trends to continue operating.

The following debt ratings have been affirmed:

Jackson National Life Funding, LLC - “AA” rating program

– “Aa” in all notes issued under the programme

Jackson National Life Global Funding - “AA” rating program

– “Aa” in all notes issued under the programme

Jackson National Life Insurance Company –

– “A +” to $ 250 million surplus of 8.15% notes due 2027

Founded in 1899, A.M. Best Company is a global full-service credit
Rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals
health care systems and providers. For more information, visit
www.ambest.com.

Related posts:

1. A.M. Best Affirms Ratings of The Penn Mutual Life Insurance Company and Its Subsidiary OLDWICK, N.J. — A.M. Best Co. has affirmed the financial...
2. Jackson National Life Insurance Company Jobs and Profile About Jackson … One of the greatest of americas life...
3. National Life Insurance Company National Life Insurance Company was chartered on November 13, 1848...
4. Life Insurance Company Rating Categories When you choose a life insurance company the first consideration...
5. Protective Life Insurance Company Protective Life Insurance Company was established in a deep belief...