S&P rates Jackson Financial BBB

S&P said it assigned a BBB long-term issuer credit rating to Jackson Group’s nonoperating holding company, Jackson Financial Inc. The outlook is stable.

“The rating on JFI is three notches below the rating on Jackson’s core operating subsidiaries, Jackson National Life Insurance Co. and Jackson National Life Insurance Co. of New York, which is standard for U.S.-based holding companies, because it depends primarily on dividends from its operating subsidiaries to meet its ongoing financial obligations. JFI currently has no senior debt outstanding and a negligible amount of cash and liquid assets at the holding company level; so, it relies on dividends from its subsidiaries to pay its relatively small amount of annual operating expenses. We expect the annual remittances from those subsidiaries to the holding company to be more than enough to cover those expenses for the next several years,” S&P said in a press release.

The outlook on JFI reflects the outlook on the ratings of its core operating subsidiaries, the agency said.

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