Insurance ratings actions: A.M. Best acts on Allstate Life Insurance

S&P Global Market Intelligence compiles ratings actions in the insurance space daily through 5 p.m. ET. Actions after 5 p.m. ET will be included in the following day's roundup.

U.S. and Canada

A.M. Best assigned the A- financial strength rating and the "a-" long-term issuer credit rating to Pekin Select Insurance Co., a newly formed member of Pekin Insurance Group. The outlook assigned to these credit ratings is stable.

The ratings reflect Pekin Select Insurance's balance sheet strength, which A.M. Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also consider the addition of Pekin Select to the group's intercompany reinsurance pooling agreement and its strategic importance to Pekin Insurance Group. Additionally, the ratings reflect the execution risk associated with any new business that the company will underwrite.

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A.M. Best downgraded the long-term issuer credit ratings to "aa-" from "aa" and affirmed the A+ financial strength ratings of Allstate Life Insurance Co. and Allstate Assurance Co. and placed the credit ratings under review with negative implications.

The companies' ratings reflect their balance sheet strength, which A.M. Best categorizes as very strong, as well as their strong operating performance, favorable business profile and very strong enterprise risk management.

In addition, A.M. Best affirmed the financial strength rating of A+ and long-term issuer credit rating of "aa" of American Heritage Life Insurance Co. The outlook of the ratings is stable.

The ratings actions follow the news that Allstate agreed to sell Allstate Life Insurance Co. and certain subsidiaries to entities managed by The Blackstone Group Inc. for $2.8 billion, pending regulatory approval.

At the same time, A.M. Best downgraded the financial strength ratings to A from A+ and the long-term issuer credit rating to "a+" from "aa" of Allstate Life Insurance Co. of New York. The outlook on the long-term issuer credit rating was revised to negative from stable, while the outlook on the financial strength rating is stable.

The downgrade follows Allstate Corp.'s decision to pursue strategic alternatives related to this entity.

The ratings of Allstate Life Insurance Co. of New York reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, neutral business profile and very strong enterprise risk management.

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DBRS Morningstar discontinued the financial strength rating of Intact Farm Insurance Inc. as the company is no longer active and will be dissolved in 2021.

The ratings action does not affect the credit profile of Intact Financial Corp. and its affiliates.

Europe

A.M. Best affirmed the financial strength ratings of A- and the long-term issuer credit ratings of "a-" of Accelerant Insurance Ltd. and Accelerant Specialty Insurance Co. The outlook of the credit ratings is stable.

The companies are wholly owned subsidiaries of Accelerant Holdings.

The ratings reflect the strategic importance of the companies to the Accelerant group, along with Accelerant Holdings' consolidated balance sheet strength, which A.M. Best categorizes as very strong, as well as the group's adequate operating performance, limited business profile and appropriate enterprise risk management.

Asia-Pacific

Fitch Ratings affirmed the A(lka) national insurer financial strength rating of Sri Lanka-based Continental Insurance Lanka Ltd., with a stable outlook.

The rating reflects Continental Insurance's moderate business profile, satisfactory financial performance and capital position, as well as its prudent investment mix.

The company's business profile is supported by its adequate business franchise and moderate operating scale, backed by a gradually improving nonlife market share. The rating agency added that Continental Insurance's business risk profile and diversification are also on par with that of its domestic peers.

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