TEXT-S&P :Prudential rtg unaffectd by acquirng Hartford Life
Sept 28 - Standard & Poor's Ratings Services said today that its ratings on Prudential Financial Inc. (PRU; A/Stable/A-1) and its subsidiaries are not affected by the announced agreement to acquire the individual life insurance business of Hartford Financial Services Group Inc. (HIG) via a reinsurance agreement. We believe the acquisition will bolster PRU's presence in the U.S. individual life insurance market, particularly in wire-house and bank channels. We consider HIG's product portfolio, which features variable and universal life products, to be complementary to PRU's term life insurance offerings, which have accounted for the majority of PRU's recent individual life insurance sales. Over time, we expect the combined insurance businesses to yield expense synergies through cost savings in overlapping functions. We expect the transaction to be financed mainly with on-balance-sheet resources and to be modestly accretive to pretax adjusted operating income in 2013, net of first-year integration costs. In 2012, we expect interest coverage, on a pretax adjusted operating income basis, of about 8.5x (6.5x including hybrids), with further improvement in 2013. We expect the company's debt leverage to decline to near 20% and its total financial leverage, including hybrids, to remain less than 30%.
- Former WWE champ nabs suspected burglar in Arizona
- First Ebola victim in Sierra Leone capital on the run
- Thousands take to N.Y. streets to protest Israeli offensive in Gaza
- U.S. fighter jets escort Canadian plane home over passenger threat
- Apple iPhones allow extraction of deep personal data, researcher finds