Standard & Poor’s Ratings Services has affirmed its ‘A+’ long-term counterparty credit and insurer financial strength ratings on Le Mans Re with a “stable” outlook, following a review of the French-based reinsurer.
“The ratings reflect Le Mans Re’s strong business position; strong financial flexibility – defined as the ability to source capital relative to requirements – as a subsidiary of XL Capital Ltd. (XLC; A+/Stable/–), which also owns operating company XL Re Ltd. (AA/Stable/–); and very strong risk-based capital adequacy,” stated S&P credit analyst Peter Grant. “The ratings are constrained, however, by Le Mans Re’s marginal operating performance over the past three years.”
“The stable outlook is based on the expectation of Le Mans Re’s continued integration into XL Re Ltd.,” said the announcement. “Le Mans Re’s capital base is expected to remain at a very strong level, consistent with the stated policy of the XL group. Any prospective improvement in the ratings on Le Mans Re will be largely dependent on the company’s ability to consistently attain a level of operating performance in line with peers, affiliates, and the expectations of its parent,” it concluded.
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