Fitch Places Ratings of Sun Life Financial Inc.'s U.S. Subs on Rating Watch Negative
CHICAGO--(BUSINESS WIRE)--
Fitch Ratings has placed the 'A-' Insurer Financial Strength (IFS)
ratings of Sun Life Financial Inc.'s (TSE, NYSE: SLF) U.S. life
insurance subsidiaries on Rating Watch Negative. A complete list of
ratings follows at the end of this release.
Today's rating action follows SLF's announcement that it reached a
definitive agreement to sell Sun Life Assurance Company of Canada (U.S.)
and Sun Life Insurance & Annuity Co. of New York to Delaware Life
Holdings, a company owned by shareholders of Guggenheim Partners. The
sale will represent a complete transfer of U.S. variable annuity risk
for SLF, since this business is contained in a separate legal entity.
Other businesses being sold include fixed annuity and fixed indexed
annuity products, corporate and bank-owned life insurance products and
variable life insurance products.
In January 2012, Fitch had downgraded the U.S. life subsidiaries 3
notches following SLF's announcement that it was exiting the U.S.
variable annuity and individual insurance markets. At that time, Fitch
viewed the subsidiaries as having Limited Importance from a strategic
perspective. On a stand-alone basis, Fitch believed the ratings were in
the 'BBB' category but the companies continued to benefit from SLF's
ownership.
Resolution of the Rating Watch will occur following further discussions
with management and completion of the sale and will likely result in a
downgrade of the IFS ratings by at least one notch.
Fitch has placed the following ratings on Rating Watch Negative:
Sun Life Assurance Co. of Canada (U.S.)
--IFS ratings at 'A-'.
Sun Life Insurance & Annuity Co. of NY
--IFS ratings at 'A-'.
Additional information is available at 'www.fitchratings.com'.
The ratings above were unsolicited and have been provided by Fitch as a
service to investors.
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
THIS SITE.
Fitch Ratings Primary Analyst Tana M. Higman, +1-312-368-3122 Director Fitch,
Inc. 70 W. Madison Street Chicago, IL 60602 or Secondary
Analyst R. Andrew Davidson, CFA, +1-312-368-3144 Senior
Director or Committee Chairperson James B. Auden, CFA,
+1-312-368-3146 Managing Director or Media Relations Brian
Bertsch, New York, +1-212-908-0549 brian.bertsch@fitchratings.com
Press Release $SLF Sun Life Financial Inc.
CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has placed the 'A-' Insurer Financial Strength (IFS) ratings of Sun Life Financial Inc.'s (TSE, NYSE: SLF) U.S. life insurance subsidiaries on Rating Watch Negative. A complete list of ratings follows at the end of this release.
Today's rating action follows SLF's announcement that it reached a definitive agreement to sell Sun Life Assurance Company of Canada (U.S.) and Sun Life Insurance & Annuity Co. of New York to Delaware Life Holdings, a company owned by shareholders of Guggenheim Partners. The sale will represent a complete transfer of U.S. variable annuity risk for SLF, since this business is contained in a separate legal entity. Other businesses being sold include fixed annuity and fixed indexed annuity products, corporate and bank-owned life insurance products and variable life insurance products.
In January 2012, Fitch had downgraded the U.S. life subsidiaries 3 notches following SLF's announcement that it was exiting the U.S. variable annuity and individual insurance markets. At that time, Fitch viewed the subsidiaries as having Limited Importance from a strategic perspective. On a stand-alone basis, Fitch believed the ratings were in the 'BBB' category but the companies continued to benefit from SLF's ownership.
Resolution of the Rating Watch will occur following further discussions with management and completion of the sale and will likely result in a downgrade of the IFS ratings by at least one notch.
Fitch has placed the following ratings on Rating Watch Negative:
Sun Life Assurance Co. of Canada (U.S.)
--IFS ratings at 'A-'.
Sun Life Insurance & Annuity Co. of NY
--IFS ratings at 'A-'.
Additional information is available at 'www.fitchratings.com'. The ratings above were unsolicited and have been provided by Fitch as a service to investors.
Applicable Criteria and Related Research:
--'Insurance Rating Methodology', Oct. 18, 2012.
Applicable Criteria and Related Research:
Insurance Rating Methodology -- Amended
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=692293
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
Fitch Ratings
Primary Analyst
Tana M. Higman, +1-312-368-3122
Director
Fitch, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
R. Andrew Davidson, CFA, +1-312-368-3144
Senior Director
or
Committee Chairperson
James B. Auden, CFA, +1-312-368-3146
Managing Director
or
Media Relations
Brian Bertsch, New York, +1-212-908-0549
brian.bertsch@fitchratings.com
Source: Fitch Ratings