Moody's Investors Service said in a report that it has downgraded some life insurer subsidiaries that have been sold. Those sales raise questions about whether subsidiaries are as strategically important as some insurers claim, the report said. "This trend challenges the notion of 'strategic subsidiary' and the extent of rating uplift from implicit parental support. The strategic importance of subsidiaries can lack permanence," Moody's analysts said in the report.
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