S&P: Allmerica on positive watch

Standard & Poor's said it revised the CreditWatch status of its BB counterparty credit and financial strength ratings on Allmerica Financial Life Insurance & Annuity Co. to CreditWatch positive from CreditWatch negative.

S&P noted this rating action follows discussions with Goldman Sachs Reinsurance Group (GSRG), which is in the process of acquiring Allmerica.

Nevertheless, S&P said it still will consider Allmerica to be a nonstrategic component of Goldman and GSRG will maintain the mortality reinsurance that Allmerica has entered into.

The agency also said it expects that GSRG will enhance Allmerica's profitability through expense savings attained by building a variable cost structure around policy administration and asset management.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.