OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has commented that the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings of “aa+” of Massachusetts Mutual Life Insurance Company (MassMutual) (Springfield, MA) and its life/health subsidiaries, C.M. Life Insurance Company and MML Bay State Life Insurance Company (both domiciled in Enfield, CT) remain unchanged following the announcement of the sale of its subsidiary, MassMutual Japan to Nippon Life Insurance Company.
MassMutual agreed to sell 85.1% of its ownership interest in its wholly owned life insurance and wealth management affiliate to Nippon Life at a sales price of $935 million (at an assumed closing exchange rate), with MassMutual retaining a 14.9% interest. MassMutual will recognize a write-down with no material impact to risk-adjusted capitalization. A.M. Best notes that the joint ownership with Nippon Life may lead to future strategic opportunities between MassMutual and Nippon Life. The transaction is pending regulatory approval and is expected to close in the first half of 2018. MassMutual intends to use the proceeds to reinvest into existing and new business growth initiatives.
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Source: A.M. Best