Standard & Poor’s Ratings Services has assigned its ‘BBB’ long-term counterparty credit and insurer financial strength ratings to Bermuda-based insurer, International General Insurance Co. Ltd. (IGI) with a positive outlook. Concurrently, S&P withdrew its ‘BBB’ long-term counterparty credit and insurer financial strength ratings on International General Insurance Co. Ltd. Jordan (IGI Jordan), following its redomiciling to Bermuda. “The rating action on IGI follows the transfer of all past and existing assets and liabilities of IGI Jordan to IGI and the transformation of IGI Jordan into an underwriting agency underwriting all business on behalf of IGI in Bermuda,” explained S&P credit analyst Jelena Bjelanovic.
A.M. Best Co. has affirmed the financial strength ratings (FSR) of’ A-‘ (Excellent) and the issuer credit ratings (ICR) of “a-” of the rated operating subsidiaries of the UK’s Royal & Sun Alliance Insurance Group plc (R&SA), as well as the ratings of R&SA’s debt instruments, which are guaranteed by Royal & Sun Alliance Insurance plc. The outlook on all ratings remains positive. Best added: “The group’s consolidated risk-adjusted capitalization is likely to remain excellent in 2007 and 2008, despite A.M. Best’s expectation that growth in the United Kingdom and selected emerging markets will be strong over this period. In addition, the ratings reflect the reduced potential for capital volatility as a result of reserve deterioration, owing in part to the sale of the group’s U.S. operation to Arrowpoint Capital in March 2007.”
A.M. Best Co. has withdrawn the financial strength rating (FSR) of ‘A’ (Excellent) and issuer credit rating (ICR) of “a” of Gerling-Konzern Allgemeine Versicherung AG(GKA) and assigned a category NR-5 (Not Formally Followed), as a result of the completion of its merger into HDI-Gerling Industrie Versicherung AG (HGIV) (formerly known as HDI Industrie Versicherung AG). The FSR of ‘A’ (Excellent) and ICR of “a” of HGIV remain unchanged. Best also noted that HGIV has assumed all of GKA’s liabilities, and consequently, the debt rating of “bbb+” on the €250 million ($362 million) subordinated fixed to floating rate notes due 2024 originally issued by GKA and the FSR of ‘A’ (Excellent) and ICR of “a” of Gerling America Insurance Company (GAIC) also remain unchanged. “GAIC continues to benefit from a full rating enhancement due to the reinsurance support now provided by HGIV,” Best added.
Standard & Poor’s Ratings Services has issued a statements to the effect that its ratings and outlook on the Spanish Mapfre insurance group (core operating entities Mapfre Empresas, Compania de Seguros y Reaseguros, S.A. and Mapfre Re Compañía de Reaseguros, S.A) will not be affected by the group’s proposed acquisition of 100 percent of the shares of Commerce Group Inc. (See IJ web site Oct. 30). S&P rates Mapfre ‘AA’ with a stable outlook, while Commerce is rated ‘BBB’ with a stable outlook. The ratings include Commerce subsidiaries Commerce Insurance Co. and Citation Insurance Co. (M.A.) (both are rated A/Stable/–), together with American Commerce Insurance Co., Commerce West Insurance Co., and State-Wide Insurance Co. (all not rated). Nonetheless S&P expressed “some concerns surrounding the proposed transaction.” Specifically, they “relate to the limited immediate strategic fit of Commerce within Mapfre and the group’s ability to replicate the success of the acquired business model outside of its home state of Massachusetts and into new customer groups.”
A.M. Best Co. has assigned a financial strength rating of ‘B++’ (Good) and an issuer credit rating of “bbb” to Dubai’s Alliance Insurance (PSC) with a stable outlook. “The rating of Alliance reflects its good local business position, good underwriting performance and strong and sustainable risk-adjusted capitalization, partially offset by high equity volatility exposure and concentration risks,” said Best. The Company provides an extensive range of life and general insurance products and services to the resident population in the United Arab Emirates (UAE).”
A.M. Best Co. has assigned a financial strength rating of ‘A-‘ (Excellent) and an issuer credit rating of “a-” to Malaysia’s Lonpac Insurance Bhd with a stable outlook. “The ratings reflect Lonpac’s track record of profitable operation, diversified business composition and adequate capitalization,” Best noted. “The ratings also consider the company’ s distribution capabilities and the growth opportunity in the Malaysian non-life sector.”
A.M. Best Co. has affirmed the financial strength rating (FSR) of ‘A-‘ (Excellent) and assigned an issuer credit rating (ICR) of “a-” to Barbados-based United Insurance Company Limited with a stable outlook. “The ratings reflect United’ s strong capitalization, favorable underwriting performance and solid regional market profile,” said Best. United is a regional insurer with a focus on personal and small commercial lines throughout the Caribbean. The company’ s parent, Barbados Shipping and Trading Company Limited (BS&T), is publicly traded on the Barbados and Trinidad stock exchanges.
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