Moody's affirms UnumProvident ratings

Moody's Investors Service said it affirmed the credit ratings of UnumProvident Corp. (UnumProvident - senior debt at Baa3) and the A3 insurance financial strength ratings of UNUM Life Insurance Co. of America and the company's other operating life insurance subsidiaries.

The outlook remains negative.

This affirmation follows UnumProvident's announcement that it has agreed to sell the company's Canadian operation, which is run out of Provident Life and Accident Insurance Co. to RBC Insurance.

Commenting on the transaction, which is expected to close by March 2004 and is subject to approval by Canadian regulators, Moody's said that the release of capital, totaling at least $500 million after tax, will improve the company's statutory balance sheet and boost the company's NAIC risk-based capital. The rating agency added, that it expects the proceeds of the transaction to remain within UnumProvident's U.S. life insurance operations, further strengthening statutory capital adequacy.

The rating agency also noted that it did not expect the sale of the Canadian operations to materially affect the company's statutory operating earnings.

© 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.