KBRA Assigns Rating to JAB Holdings UK Ltd. and Affirms Ratings for Prosperity Subsidiaries Following Acquisition by JAB Holding Company
6 Nov 2025 | New York
KBRA removed from Watch Developing and affirmed the A- insurance financial strength ratings (IFSRs) of S.USA Life Insurance Company, Inc., National Western Life Insurance Company, SBLI USA Life Insurance Company, Shenandoah Life Insurance Company, and Prosperity Life Assurance Limited with Stable Outlooks. KBRA assigned a BBB- Issuer rating to JAB Holdings UK Ltd. with a Stable Outlook. The BBB- Issuer rating of Prosperity Group Holdings, LP (PGH) was removed from Watch Developing, affirmed with a Developing Outlook and subsequently withdrawn due to the reorganization of this entity following the closing of the acquisition transaction.
Key Credit Considerations
The removal of the Watch Developing Status and affirmation of the ratings are based on Prosperity’s experienced management team that is further enhanced with JAB Holding Company’s expert insurance segment leadership, broad access to financial flexibility and long-term capital, solid capitalization, relatively stable liabilities, risk management that continues to mature, and Prosperity achieving scale through its acquisition of National Western in mid-2024. Due to the inter-generational structure of JAB Holding Company, its investment in Prosperity is long-term and JAB plans to provide ongoing capital support to Prosperity’s build-out as needed. Historically JAB Holding Company’s investments were focused on various consumer sectors. More recently, JAB made the strategic decision to diversify into the life and annuity industry, which it views as a defensive and lower-risk sector with attractive profit dynamics. Prosperity represents JAB’s entry into the sector, and it is expected to be a foundational part of JAB’s strategy to build a global life/annuity business at scale. JAB Holding Company has ~$70 billion in assets, including JAB Insurance.
Balancing these strengths are ongoing execution risk related to Prosperity’s continued organizational build out and the acquisition by JAB, ongoing systems and risk management investments, rapid growth and its recent large acquisition of NWL. KBRA views the company’s enterprise risk management (ERM) as appropriate for its current stage of development and, while acknowledging material enhancements to-date, also notes that ERM needs to continue to mature to keep pace with the company’s ongoing transformation and growth. New business strain and business-investment costs have been constraints on profitability, but strain is nearing an inflection point and major costs related to investments in the business are expected to sunset in future years. Other factors offsetting strengths include highly competitive targeted organic and inorganic markets, and material reliance on third parties such as its owner and credit facility providers for near-term cash resources at Prosperity’s holding companies.
Rating Sensitivities
Factors that could positively impact the rating include enhanced levels and consistency of earnings and profitability materially ahead of plan while maintaining strong capitalization, enhanced balance in business mix profile, demonstrated in product reserves and earnings as well as in geographic mix of premiums, enhanced market position in its targeted organic markets, solidified market position in M&A/Reinsurance, development of material financial resources available to the holding company beyond additional borrowings or JAB capital contributions, and development of material, sustained capital cushions at each (re)insurer.
Factors that could negatively impact the rating include strategic plan execution that materially lags expected milestones under its new ownership, any material negative change to Prosperity’s risk profile, lack of continued ERM maturation consistent with Prosperity’s growth and transformation, inability to further outrun new business strain resulting in profitability materially behind plan, material evidence of a decline in JAB’s commitment to Prosperity, and lack of development of financial resources available to the holding company beyond additional borrowings or JAB capital contributions.
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