AM Best Removes from Under Review with Developing Implications and Upgrades Credit Ratings of XL Group Ltd, Its Main Property/Casualty Subsidiaries and XLIT Ltd.
AM Best also has removed from under review with developing implications and affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb+” of
In addition, AM Best has removed from under review with developing implications and affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” of Lloyd’s Syndicate 2003 (
In addition, the FSR of A- (Excellent) and the Long-Term ICR of “a-” of
In
The ratings of XL reflect the organization’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, favorable business profile and appropriate ERM. The rating upgrades reflect XL’s strategic importance to, and strategic alignment with, AXA, in enhancing the group’s position in the commercial global property & casualty (P&C) insurance sector, with the company receiving rating enhancement as a result. XL is considered well-integrated within the AXA group, and AM Best expects that prompt and sufficient operational and financial support will be made available from the AXA group to XL should it be required.
XL’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is categorized as strongest and AM Best expects it to remain at a similar level in prospective years. Balance sheet strength also considers the company’s good liquidity profile, conservative investment strategy and disciplined reserving approach.
XL’s operating earnings have been somewhat volatile and marginally adequate over the past five years (2013-2017), resulting in a five-year average return on equity (ROE) of 4.4%. In 2017, natural catastrophe losses amounting to approximately
XL maintains a favorable business profile due to its extensive distribution network, strong franchise and well-diversified book of business by both product type and geography. In 2019, businesses from AXA are anticipated to contribute approximately
The FSRs have been removed from under review with developing implications and upgraded to A+ (Superior) from A (Excellent), and the Long-Term ICRs upgraded to “aa-” from “a+”, with stable outlooks assigned for the following subsidiaries of
-
XL Bermuda Ltd -
AXA Insurance Company -
Catlin Indemnity Company -
XL Catlin Insurance Company UK Limited -
Catlin Insurance Company Ltd. -
Catlin Insurance Company, Inc. -
Catlin Re Switzerland Ltd -
Catlin Specialty Insurance Company -
Greenwich Insurance Company -
Indian Harbor Insurance Company -
XL Insurance America, Inc. -
XL Insurance Company SE -
XL Insurance Company of New York, Inc. -
XL Insurance Switzerland Ltd -
XL Re Europe SE -
XL Reinsurance America Inc. -
XL Seguros Mexico, S.A. de C.V. -
XL Select Insurance Company -
XL Specialty Insurance Company
The following Long-Term IRs have been removed from under review with developing implications, upgraded and assigned stable outlooks:
-- to “a-” from “bbb+” on
-- to “a-” from “bbb+” on
-- to “a-” from “bbb+” on
-- to “a-” from “bbb+” on
-- to “a-” from “bbb+” on
-- to “bbb+” from “bbb” on
-- to “bbb+” from “bbb” on
-- to “bbb” from “bbb-” on
-- to “bbb” from “bbb-” on
The following indicative Long-Term IRs have been withdrawn at the company’s request:
-- “bbb+” on senior unsecured debt
-- “bbb” on subordinated debt
-- “bbb-” on preferred stock
The following Long-Term IR has been removed from under review with developing implications, upgraded and assigned with stable outlooks for the following securities of
-- to “a-” from “bbb+” on
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Source: AM Best
AM Best Affirms Credit Ratings of Qianhai Reinsurance Co., Ltd.
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