A.M. Best Places Ratings of AXA S.A.’s U.S. Subsidiaries Under Review With Negative Implications

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has placed under review with negative implications the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” of AXA Insurance Company, as well as the FSR of A (Excellent) and ICR of “a+” of AXA Art Insurance Corporation (AXA Art). Additionally, A.M. Best has placed under with review with negative implications the FSR of B++ (Good) and ICRs of “bbb” of Coliseum Reinsurance Company (Coliseum Re) andAXA Corporate Solutions Life Reinsurance (ACSLRe) (both domiciled in Wilmington DE). These companies are U.S. subsidiaries of AXA S.A. (AXA) (France). All the above companies are domiciled in New York, NY, unless otherwise specified.

These rating actions are in response to the continued negative developments among the eurozone economies and its potential affects on AXA, the ultimate parent, which affords these U.S. subsidiaries the benefit of certain levels of rating enhancement. A.M. Best’s concerns with the parent stem from the continued negative developments regarding the eurozone sovereign debt crisis, continued deterioration of the sovereign creditworthiness among several eurozone countries and the negative economic outlook for the region. Since the ratings of AXA Insurance Company, Coliseum Re, ACSLRe and AXA Art all receive partial rating enhancement from being part of AXA, any material financial exposure to AXA may negatively impact the ratings of its subsidiaries.

The ratings for each of the noted AXA U.S. subsidiaries will remain under review with negative implications while A.M. Best examines AXA’s exposure to a prolonged adverse economic environment within the eurozone and the potential impact on its U.S. insurance operations.

Upward rating pressures are unlikely at this point.

Downward rating pressure may occur if there is a worsening of AXA’s risk-adjusted capitalization, which is tied to investment losses, deterioration of the operating environment in key territories of the parent or a perceived lessening of support provided by AXA for its U.S. insurance operations.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; Understanding BCAR for Life/Health Insurers”; “Rating Members of Insurance Groups”; “Catastrophe Risk Management Incorporated Within the Rating Analysis”; and “Assessing Country Risk.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.David Blades, CPCU
Senior Financial Analyst
908-439-2200, ext. 5422
[email protected]
orJoseph RoethelAssistant Vice President
908-439-2200, ext. 5630
[email protected]
orRachelle MorrowSenior Manager, Public Relations
908-439-2200, ext. 5378
[email protected]
orJim PeavyAssistant Vice President, Public Relations
908-439-2200, ext. 5644
[email protected]

Source: A.M. Best Co.