The national property and casualty lines, except for New Jersey, are going to
Moodys has affirmed its negative rating outlook on Prudential following the transaction, but notes that the sales may have a positive effect on the company. The property and casualty lines have not been as profitable as Prudentials core life insurance business, and also represent less stable earnings because of catastrophic risk.
The ratings agency had expected Prudential to sell the businesses at below-GAAP valuation because of poor operating results and a sluggish acquisitions market. However, Prudentials deals fell below Moodys expectations. "The final transaction prices including stop loss coverage and indemnification agreements were moderately less favorable than initially anticipated by Moodys," according to the company.
