S&P Global Market Intelligence compiles ratings actions in the insurance space daily through 12 a.m. ET the previous day. Actions after 12 a.m. ET will be included in the following day's roundup.
S&P acts on Taiwanese insurers over surging pandemic insurance claims
S&P Global Ratings downgraded the long-term local-currency issuer credit and financial strength ratings to BBB+ from A- of Hotai Insurance Co. Ltd.
The rating agency also placed the company's ratings on CreditWatch with negative implications, reflecting the potential for further weakening in its capitalization over the next few quarters.
The downgrade reflects S&P Global Ratings' view that current and future claims related to Hotai Insurance's pandemic insurance policies would weaken its capitalization to strong from the previous very strong assessment due to the growing prevalence of the COVID-19 pandemic in Taiwan and the number of policies sold by the insurer.
Pandemic insurance claims already had a material detrimental effect on Hotai Insurance's capitalization, weakening its overall credit profile by one rating notch, according to the rating agency.
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S&P Global Ratings placed the A long-term local-currency financial strength and issuer credit ratings of Tokio Marine Newa Insurance Co. Ltd. on CreditWatch with negative implications.
The ratings action reflects the rating agency's view of the high uncertainty surrounding Tokio Marine Newa's ability to sustain its overall creditworthiness over the next few quarters as it faces substantial claim losses on its COVID-19 pandemic insurance policies.
Tokio Marine Newa would be unable to maintain an adequate liquidity buffer without an effective and timely financial management plan amid surging pandemic claims, but the insurer would likely take action to maintain sufficient liquidity to serve its outstanding insurance liabilities, according to S&P Global Ratings.
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S&P Global Ratings placed the A- long-term local-currency financial strength and issuer credit ratings of Chung Kuo Insurance Co. Ltd. on CreditWatch with negative implications.
The ratings action reflects the potential material weakening of Chung Kuo's capitalization due to substantial claim payments on pandemic insurance policies.
Chung Kuo's total losses on pandemic claim payments could reach several billion New Taiwan dollars based on its outstanding policies and policies still under the underwriting process, according to S&P Global Ratings' scenario analysis.
U.S. and Canada
A.M. Best upgraded the financial strength rating to A- from B++ and the long-term issuer credit ratings to "a-" from "bbb+" of Stonetrust Commercial Insurance Co. and its reinsured subsidiary, Stonetrust Premier Casualty Insurance Co.
The outlooks were revised to stable from positive.
Stonetrust's ratings reflect the group's balance sheet strength, which A.M. Best assesses as very strong, and its adequate operating performance, limited business profile and appropriate enterprise risk management.
The upgrades reflect the sustained improvement in the group's overall balance sheet strength, strongest risk-adjusted capitalization level, consistently enriched surplus position and consistently favorable loss reserve development.
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A.M. Best assigned the A+ financial strength rating and the "aa-" long-term issuer credit rating to W.R. Berkley Corp.'s newly reinsured affiliates, Intrepid Specialty Insurance Co. and Intrepid Casualty Co.
The rating agency also affirmed the "a-" long-term issuer credit rating of W.R. Berkley, as well as the A+ financial strength rating and "aa-" long-term issuer credit rating of Berkley Life & Health Insurance Co.
A.M. Best concurrently affirmed the A+ financial strength rating and the "aa-" long-term issuer credit rating of the W.R. Berkley Insurance Group members, including Berkley Insurance Co., Acadia Insurance Co., Admiral Indemnity Co., Admiral Insurance Co., Berkley Casualty Co., Berkley Assurance Co., Berkley National Insurance Co., Berkley Regional Insurance Co., Berkley Specialty Insurance Co., Carolina Casualty Insurance Co., Clermont Insurance Co., Continental Western Insurance Co., Firemen's Insurance Co. of Washington D.C., Gemini Insurance Co., Great Divide Insurance Co., Intrepid Insurance Co., Key Risk Insurance Co., Midwest Employers Casualty Co., Nautilus Insurance Co., Preferred Employers Insurance Co., Queen's Island Insurance Co. Ltd., Riverport Insurance Co., StarNet Insurance Co., Tri-State Insurance Co. of Minnesota, Union Insurance Co., Union Standard Lloyds, W.R. Berkley Europe AG, Berkley International Seguros Mexico SA and Berkley International Fianzas Mexico SA. The outlooks are stable.
The ratings of W.R. Berkley Insurance Group reflect its balance sheet strength, which A.M. Best assesses as strongest, and its strong operating performance, favorable business profile and appropriate enterprise risk management.
Berkley Life & Health Insurance's ratings reflect its balance sheet strength, which A.M. Best assesses as strongest, and its adequate operating performance, neutral business profile, appropriate enterprise risk management and the financial and operational support of the parent company.
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Fitch Ratings affirmed and withdrew the BBB insurer financial strength rating of Aspida Life Re Ltd. The outlook was stable.
The rating agency cited commercial reasons for the withdrawal.
Aspida Life Re's rating reflects its less favorable business profile and moderate capitalization, as well as the enhancement to its investment, management and deal origination capabilities provided by Ares Management Corp.
Asia-Pacific
Fitch revised the outlook to positive from stable and affirmed the BBB+ insurer financial strength and the AA-(twn) national insurer financial strength ratings of Taiwan Life Insurance Co. Ltd.
The outlook revision reflects the rating agency's expectation that Taiwan Life will sustain the improvement in its operating results and sound capital buffer in light of its asset management strategy and product mix.
The affirmation reflects the company's good financial performance and capitalization and favorable company profile.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
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