A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Sterling Life Insurance Company (Sterling) (Chicago, IL), a subsidiary of Cigna Corporation (Cigna) [NYSE: CI]. The ratings of all Cigna’s subsidiaries remain under review with developing implications following the announcement of Cigna’s acquisition by Anthem, Inc. (Anthem) [NYSE: ANTM]. The acquisition is subject to multiple regulatory approvals and is expected to close in late 2016. Concurrently, A.M. Best has withdrawn the ratings of Sterling upon management’s request to no longer participate in A.M. Best’s interactive rating process.
The ratings reflect Sterling’s recent history of positive earnings, mature Medicare supplement product, strong level of risk-adjusted capitalization and Cigna’s ability to provide support if needed. Sterling will continue to operate its closed Medicare supplement block of business as part of Cigna’s larger Medicare supplement segment. Offsetting factors include premium and earnings decline in 2015 following the acquisition by Cigna and the transfer of all non-Medicare Supplement premium to Sterling’s former parent.
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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