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A.M. Best Places Ratings of Continental Life Insurance Company of Brentwood Group Under Review With Positive Implications

^{Published on 2011-06-16 13:01:00 - Market Wire}
 

OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has placed under review with positive implications the financial strength rating of A- (Excellent) and issuer credit ratings of aa-a of Continental Life Insurance Company of Brentwood, Tennessee (CLIC) and its subsidiary, American Continental Insurance Company (ACIC) (Brentwood, Tennessee).

"Risk Management and the Rating Process for Insurance Companies."

This action follows the recent announcement by Genworth Financial, Inc. (NYSE: GNW) that it has reached an agreement to sell its Medicare supplement business and related blocks of in-force business to Aetna Inc. (Aetna) (NYSE: AET). The purchase price of the transaction is approximately $290 million, and Aetna will acquire 100% of the stock of CLIC and reinsure certain related blocks of in-force business.

The under review status with positive implications reflects the anticipated financial and operational support of the Medicare supplement companies by Aetna. A.M. Best plans to resolve the under review status upon the completion of the transaction, which is expected in the fourth quarter of 2011, subject to regulatory approval.

The under review status also recognizes the potential for a favorable change in CLIC and ACICa™s ratings and/or the rating outlook based on the outcome of A.M. Besta™s future discussions with Aetnaa™s management team and the close of the transaction.

The principal methodology used in determining these ratings is [ Besta™s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition ], which provides a comprehensive explanation of A.M. Besta™s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: aUnderstanding BCAR for Life and Health Insurersa; aRating Members of Insurance Groupsa; aRating Health Insurance Companiesa; and aRisk Management and the Rating Process for Insurance Companies.a Methodologies can be found at [ www.ambest.com/ratings/methodology ].

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit [ www.ambest.com ].

Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.