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Insurance ratings actions: Fitch affirms Travelers, CNA Financial

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Insurance ratings actions: Fitch affirms Travelers, CNA 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.

Life and health

A.M. Best placed under review with developing implications the financial strength rating of A- (Excellent) and the long-term issuer credit rating of "a-" of Columbus, Ohio-based Grange Life Insurance Co.

The under review with developing implications status reflects the announcement that the company has reached an agreement to be acquired by Kansas City Life Insurance Co.

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S&P Global Ratings affirmed its A+ financial strength and issuer credit ratings on New Zealand-based OnePath Life (NZ) Ltd., which is expected to be sold to Cigna Corp.

The outlook remains negative.

The agency said it affirmed the ratings based on OnePath Life's strong competitive position and very strong capital and earnings position. The ratings include a one-notch uplift above its "a" stand-alone credit profile due to expected group support if required.

Property and casualty

A.M. Best removed from under review with positive implications and upgraded the financial strength rating to A- (Excellent) from B+ (Good) and the long-term issuer credit rating to "a-" from "bbb-" of Roxbury, N.Y.-based Midrox Insurance Co.

Concurrently, A.M. Best affirmed the financial strength ratings of A- (Excellent) and the long-term issuer credit ratings of "a-" of Montgomery, N.Y.-based Mid-Hudson Co-Operative Insurance Co. and Kinderhook, N.Y.-based Claverack Co-Operative Insurance Co.

The outlook of the ratings is stable.

The ratings reflect the group's very strong balance sheet, adequate operating performance, limited business profile and appropriate enterprise risk management.

The ratings were placed under review with positive implications in December 2017 following a signed 100% quota share reinsurance agreement between Mid-Hudson and Midrox, anticipated to be effective Jan. 1 following state approval.

The ratings actions reflect the 100% quota share reinsurance agreement, whereas Midrox reinsures substantially all its insurance risk with Mid-Hudson.

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A.M. Best assigned a long-term issuer credit rating of "bbb-" to Memphis, Tenn.-based WT Holdings Inc.

The outlook assigned to the rating is stable.

Concurrently, A.M. Best affirmed the financial strength ratings of A- (Excellent) and the long-term issuer credit ratings of "a-" of Jacksonville, Fla.-based Stillwater Insurance Co., its wholly owned subsidiary, Stillwater Property and Casualty Insurance Co., and a separately rated subsidiary, Evergreen National Indemnity Co.

The outlook of the ratings remains stable.

The rating assigned to WT Holdings is based on its role as the ultimate parent insurance holding company for Stillwater Insurance.

Stillwater Insurance's ratings reflect its very strong balance sheet, adequate operating performance, neutral business profile and appropriate enterprise risk management. Evergreen's ratings reflect its very strong balance sheet, adequate operating performance, limited business profile and appropriate enterprise risk management.

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Fitch Ratings affirmed Illinois-based CNA Financial Corp.'s long-term issuer default rating at BBB+ and its property and casualty insurance subsidiaries' insurer financial strength ratings at A (Strong).

The subsidiaries are American Casualty Co. of Reading, Pennsylvania, Columbia Casualty Co., Continental Casualty Co., Continental Insurance Co., Continental Insurance Co. of New Jersey, National Fire Insurance Co. of Hartford, Surety Bonding Co. of America, Transportation Insurance Co., Universal Surety of America, Valley Forge Insurance Co. and Western Surety Co.

The outlook for the ratings was revised to positive from stable.

The positive outlook reflects Fitch's view that exclusive of CNA Financial's exposure to reserves for runoff long-term care business, the company's ratings would be one notch higher than the current level. The positive outlook indicates that if the long-term care block performs within ratings expectation and there is no unexpected deterioration in property and casualty operations, CNA Financial's ratings will likely be upgraded over the next one to two years.

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Fitch affirmed the A+ long-term issuer default ratings of Minnesota-based Travelers Cos. Inc. and its subsidiaries, Travelers Insurance Group Holdings Inc. and Travelers Property Casualty Corp.

The parent company's short-term issuer default rating was affirmed at F1.

Additionally, the insurer financial strength ratings of members of the Travelers intercompany pool have been affirmed at AA. The members are American Equity Specialty Insurance Co., Discover Property & Casualty Insurance Co., Discover Specialty Insurance Co., Farmington Casualty Co., Fidelity and Guaranty Insurance Underwriters Inc., Northfield Insurance Co., Northland Casualty Co., Northland Insurance Co., St. Paul Fire and Marine Insurance Co., St. Paul Guardian Insurance Co., St. Paul Mercury Insurance Co., St. Paul Protective Insurance Co., St. Paul Surplus Lines Insurance Co., Automobile Insurance Co. of Hartford, Connecticut, Charter Oak Fire Insurance Co., Phoenix Insurance Co., Standard Fire Insurance Co., Travelers Casualty Co., Travelers Home and Marine Insurance Co., Travelers Indemnity Co., Travelers Indemnity Co. of America, Travelers Indemnity Co. of Connecticut, TravCo Insurance Co., Travelers Casualty and Surety Co., Travelers Casualty Co. of Connecticut, Travelers Casualty Insurance Co. of America, Travelers Commercial Casualty Co., Travelers Commercial Insurance Co., Travelers Constitution State Insurance Co., Travelers Excess and Surplus Lines Co., Travelers Personal Insurance Co., Travelers Personal Security Insurance Co., Travelers Property Casualty Co. of America, Travelers Property Casualty Insurance Co. and United States Fidelity and Guaranty Co.

Fitch affirmed the insurer financial strength ratings at AA of the following members of the Travelers group: American Equity Insurance Co., Fidelity and Guaranty Insurance Co., First Floridian Auto and Home Insurance Co., Gulf Underwriters Insurance Co., Select Insurance Co., Travelers Lloyds Insurance Co., Travelers Casualty and Surety Co. of America and Travelers Lloyds of Texas Insurance Co.

The outlook is stable.

The parent company's ratings are supported by very strong capitalization, very strong financial performance and earnings, a history of favorable reserve development and a top-tier competitive position in the U.S. property and casualty insurance market.

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Moody's placed on review for downgrade the Baa3 insurance financial strength rating of Turkey-based Allianz Sigorta AS.

The action follows Moody's recent decision to place Turkey's Ba2 government bond ratings on review for downgrade.

The action reflects that the insurer's key business and financial credit fundamentals are correlated with and linked to the economic and market conditions in Turkey, where it is domiciled and has all its operations.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.

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