A.M. Best Co. in Oldwick, N.J., said Tuesday that it has placed under review the A-plus financial strength rating of IDS Life Insurance Co. in Minneapolis and its subsidiaries.
It took the action with negative implications, the rating company said, in view of the announcement that IDS Life's ultimate parent, American Express Co., would spin off its full ownership of American Express Financial Corp., the holding company for its financial advisory, insurance, and asset management businesses.
The rating will remain under review until A.M. Best meets with management to discuss the details surrounding the stand-alone organization's strategic and financial plans, including the holding company's capital structure and sources of liquidity, future capitalization of the operating subsidiaries, and the spinoff's potential distribution and branding strategies.
The review also affects: American Centurion Life Assurance Co., American Enterprise Life Insurance Co., American Partners Life Insurance Co., and IDS Life Insurance Co. of New York.
