Fitch Ratings on May 21 placed the AAA(col) national scale financial strength rating of Colombia-based Liberty Seguros De Vida SA on rating watch evolving.
The action follows fellow Colombian firm Compañía de Seguros Bolívar SA's announced acquisition of the occupational risk and individual life insurance business lines of Liberty Vida's parent, Liberty Seguros S.A., for an undisclosed amount.
The rating watch placement reflects a change in Fitch's perception of the support Liberty Vida can expect from its parent. Under Fitch criteria, Liberty Vida's importance would go to "limited" from "important." Fitch will re-evaluate support from the parent once the deal is concluded. The companies are looking to finalize the transaction before the end of 2019.
Fitch expects Seguros Bolívar to support Liberty Seguros de Vida once the Colombian financial regulator approves the deal.