Moody's Investor Service (Moody's) has downgraded the insurance financial strength of Lincoln Benefit Life Company (Lincoln) to Baa1 from A1.
The downgrade is a result of last week's announcement that Lincoln, a wholly-owned subsidiary of Allstate Life Insurance Company (Allstate Life), its self a subsidiary Allstate Insurance Company (Allstate), will be sold to Resolution Life Holdings Inc. (Resolution) for $600 million in a transaction expected to close during the second half of the year.
The low interest rate environment is prompting companies to shed their annuity businesses in order to prop up sagging balance sheets.
And that it will.