OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) of National Western Life Insurance Company (NWLIC) (Centennial, CO). Concurrently, AM Best has placed under review with developing implications the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Ozark National Life Insurance Company (Ozark) (Kansas City, MO). In addition, AM Best has placed under review with negative implications the Long-Term ICR of “bbb” (Good) of National Western Life Group, Inc. (National Western) (headquartered in Austin, TX) [NASDAQ: NWLI], the parent holding company of NWLIC and Ozark.
The Credit Rating (rating) actions follow the announcement that National Western and S.USA Life Insurance Company, Inc. (S.USA), a subsidiary of Prosperity Life Group and PHG Merger Inc. (a subsidiary of S.USA) signed a definitive merger agreement whereby S.USA will acquire all the outstanding shares of common stock of National Western, in an all-cash transaction of approximately $1.9 billion. The sale has been approved by National Western’s board of directors. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the first half of 2024.
The ratings will likely remain under review with various implications pending completion of the acquisition, and until AM Best can complete its assessment of NWLIC’s and Ozark’s post-acquisition rating fundamentals and understand how the financing will impact the risk-adjusted and regulatory capital positions of each.
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