A.M. Best has affirmed the debt rating of “a” on $800 million of notes issued by Northwind Holdings, a Delaware limited liability company and wholly owned subsidiary of Unum Group. The outlook is rated as stable.
Northwind Holdings was formed to hold the stock of Northwind Re, issuing the notes and engaging in other activities incidental to the performance of its duties. Northwind Holdings is the sole shareholder of Northwind Reinsurance Company, a special purpose financial captive insurance company domiciled in Vermont.
A.M. Best’s rating takes into consideration the operating subsidiaries’ current financial strength rating of A (Excellent) and issuer credit ratings of “a”.
Northwind Holdings’ debt rating and outlook may come under negative pressure if an unfavorable earnings trend develops over a prolonged period or if certain benchmarks are not achieved or deteriorate relative to its forecast. However, the debt rating and outlook could benefit from a favorable trend in the company’s operating performance.
