Insurance ratings actions: S&P upgrades Genworth Financial

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

S&P Global Ratings raised its long-term issuer credit ratings on Genworth Financial Inc. and Genworth Holdings Inc. to B+ from B, on account of improved financial flexibility and liquidity.

The outlook on the ratings is positive, reflecting S&P Global Ratings' view that Genworth's financial profile could further improve, supported by regular dividend flows from its main U.S. mortgage insurance operations.

Concurrently, S&P Global Ratings affirmed Enact Mortgage Insurance Corp.'s BBB financial strength and issuer credit ratings, and the BB issuer credit rating on Enact Holdings Inc. The outlook remains positive.

____________________

A.M. Best placed under review with negative implications the A- financial strength rating and the "a-" long-term issuer credit ratings of Best Meridian Insurance Co. and Best Meridian International Insurance Co. SPC.

The ratings action reflects A.M. Best's concerns about the reported drop in capital and surplus at Best Meridian Insurance and its growth of reinsurance recoverables balances, including the reliance on unrated counterparties at Best Meridian International Insurance, which have become a large part of the organization's long-term operating strategy.

____________________

Europe

A.M. Best downgraded the long-term issuer credit rating to "bb" from "bb+" and affirmed the financial strength rating of B of Milli Reasürans Türk Anonim Sirketi. Concurrently, the rating agency placed these ratings under review with negative implications.

The ratings reflect Milli Re's consolidated balance sheet strength, which the rating agency assesses as adequate, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The downgrade of the long-term issuer credit rating follows the publication of Milli Re's audited financial statements for 2021, and reflects a deterioration in the company's consolidated risk-adjusted capitalization, as measured by A.M. Best's capital adequacy ratio.

The ratings were placed under review with negative implications, as the rating agency needs time to assess the full impact of the deteriorating economic conditions in Turkey on Milli Re's balance sheet strength and its broader credit fundamentals.

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.

Links are current as of publication time; S&P Global Market Intelligence is not responsible if those links are unavailable later.