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Insurance ratings actions: A.M. Best upgrades AMERISAFE; Fitch affirms Axa

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 affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of "a-" of New Zealand-based Kiwi Insurance Ltd. The outlook of these ratings is stable.

The ratings reflect Kiwi's strong balance sheet, adequate operating performance, neutral business profile and appropriate enterprise risk management.

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Fitch Ratings affirmed Japan-based Meiji Yasuda Life Insurance Co.'s insurer financial strength rating at A (Strong) and its long-term issuer default rating at A. The outlook is stable.

The affirmation of the rating reflects Meiji Yasuda Life's very strong business profile as one of the top five life insurers in Japan, very strong capital adequacy despite relatively high investment risks, and strong profitability.

Managed care

A.M. Best affirmed the financial strength ratings of A (Excellent) and the long-term issuer credit ratings of "a" of California-based Delta Dental of California and its affiliates, Delta Dental Insurance Co., Delta Dental of Pennsylvania and Delta Dental of New York Inc. The outlook for these ratings is stable.

The ratings reflect Delta Dental of California Group's very strong balance sheet, strong operating performance, neutral business profile and appropriate enterprise risk management.

The affirmations reflect the organization's strongest level of risk-adjusted capital on a consolidated basis.

Multiline

Fitch placed Slovenia-based Adriatic Slovenica Zavarovalna druzba dd's BBB- insurer financial strength rating on Rating Watch Positive and KD Group financna družba dd's BB issuer default rating on Rating Watch Evolving.

The ratings actions come after KD Group agreed to sell its 100% stake in Adriatic Slovenica to Italian insurer Generali's Prague-based unit Generali CEE Holding BV.

Fitch said the Rating Watch Positive status on Adriatic Slovenica reflects the agency's view that the company's acquisition by Generali will improve its credit profile. The Rating Watch Evolving status on KD Group reflects the uncertainty about the company's future strategic direction and that it will lose access to Adriatic Slovenica's dividend capacity.

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Fitch affirmed French insurer Axa's long-term issuer default rating at A and its short-term issuer default rating at F1.

The agency also affirmed German subsidiary AXA Versicherung AG's long-term issuer default rating at A+ and insurer financial strength rating at AA-.

The insurer financial strength ratings of Axa's core subsidiaries were also affirmed at AA-. The subsidiaries are AXA Art Versicherung AG, AXA ART Insurance SE, AXA France IARD SA, AXA France Vie SA, AXA Corporate Solutions Assurance, AXA Insurance Co., AXA Life Ltd., AXA Belgium SA, AXA Global Re, AXA Versicherung (Germany) AG, AXA Lebensversicherung AG, AXA Krankenversicherung AG, DBV Deutsche Beamtenversicherung AG, Deutsche Arzteversicherung Aktiengesellschaft, AXA Insurance UK Plc, AXA PPP Healthcare Ltd., AXA Insurance Pte Ltd., AXA General Insurance Hong Kong Ltd. and AXA China Region Insurance Co. (Bermuda) Ltd.

The ratings were removed from Rating Watch Negative. The outlooks are stable.

The affirmation reflects the completion of the IPO of New York subsidiary AXA Equitable Holdings Inc. and the "very low probability" of Axa having to draw on a €9 billion credit line the group has lined up as a contingent funding facility to fund the acquisition of XL Group Ltd.

The stable outlooks reflect Fitch's expectations that Axa will generate sufficient capital to improve its financial leverage and fixed-charge coverage to levels more commensurate with the insurer's ratings over the next two to three years.

Property and casualty

A.M. Best affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of "a-" of Bangkok Insurance PCL. The outlook is stable.

The ratings reflect the company's very strong balance sheet, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

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A.M. Best upgraded the long-term issuer credit rating of AMERISAFE Inc. to "bbb+" from "bbb."

The agency also upgraded the long-term issuer credit ratings to "a+" from "a" and affirmed the financial strength ratings of A of subsidiaries American Interstate Insurance Co., Silver Oak Casualty Inc. and American Interstate Insurance Co. of Texas Inc.

The outlook of the long-term issuer credit ratings was revised to stable from positive while the outlook of the financial strength ratings remains stable. All companies are headquartered in DeRidder, La.

The ratings reflect AMERISAFE's balance sheet, which A.M. Best categorizes as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The upgrade of the long-term issuer credit ratings further considers the group's expertise in the workers' compensation market for small and medium size companies in high hazard industries.

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A.M. Best placed under review with negative implications the financial strength rating of A+ (Superior) and the long-term issuer credit rating of "aa" of Germany-based International Insurance Co. of Hannover SE.

The ratings actions follow the announcement by Hannover Re and HDI Global SE of the establishment of a new joint venture, HDI Global Specialty SE, using Inter Hannover as the main carrier to focus on growth in specialty lines insurance.

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A.M. Best affirmed the ratings of MS&AD Insurance Group Holdings Inc.'s main operating and U.S. subsidiaries.

The agency affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit ratings of "aa" of Japan-based Mitsui Sumitomo Insurance Co. Ltd. and Aioi Nissay Dowa Insurance Co. Ltd.

Concurrently, A.M. Best affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit ratings of "aa" of Mitsui Sumitomo Insurance Co. of America, Mitsui Sumitomo Insurance USA Inc. and Aioi Nissay Dowa Insurance Co. of America. These companies are domiciled in New York. The agency also affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of "a-" of Aioi Nissay Dowa Insurance (China) Co. Ltd.

The outlook of these ratings is stable.

The ratings reflect Mitsui Sumitomo Insurance's balance sheet, which A.M. Best categorizes as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

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A.M. Best affirmed the financial strength ratings of A- (Excellent) and the long-term issuer credit ratings of "a-" of Honolulu-based DTRIC Insurance Co. Ltd. and its reinsured affiliate, DTRIC Insurance Underwriters Ltd. The outlook of these ratings is stable.

The ratings reflect DTRIC's strong balance sheet, marginal operating performance, limited business profile and appropriate enterprise risk management. The ratings also consider the implicit and explicit support of Aioi Nissay Dowa Insurance Co. Ltd.

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A.M. Best affirmed the financial strength ratings of A- (Excellent) and the long-term issuer credit ratings of "a-" of Bermuda-based Through Transport Mutual Insurance Association Ltd. and its U.K. subsidiary, TT Club Mutual Insurance Ltd. The outlook of these ratings remains stable.

The ratings of the parent company reflect its very strong balance sheet, adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings of the subsidiary reflect the fundamental role it plays in the companies' strategy, as well as the comprehensive reinsurance protection provided by the parent.

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A.M. Best affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of "a-" assigned to Bermuda-based Hamilton Re Ltd. The outlook of these ratings is stable.

The ratings reflect Hamilton Re's very strong balance sheet, adequate operating performance, neutral business profile and appropriate enterprise risk management.

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A.M. Best affirmed the financial strength ratings of A (Excellent) and the long-term issuer credit ratings of "a+" of Japan-based Toa Reinsurance Co. Ltd. and subsidiary Toa Reinsurance Co. of America. The outlook of these ratings is stable.

The ratings reflect Toa Re's balance sheet, which A.M. Best categorizes as strongest, adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings of the Morristown, N.J.-based subsidiary are aligned with its ultimate parent and reflect its strategic importance as an operating subsidiary.

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A.M. Best affirmed the long-term issuer credit rating of "a-" of Greenwich, Conn.-based W. R. Berkley Corp.

At the same time, the agency affirmed the financial strength ratings of A+ (Superior) and the long-term issuer credit ratings of "aa-" of Wilmington, Del.-based Berkley Insurance Co. and its reinsured subsidiaries and affiliates.

A.M. Best also affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit rating of "aa-" of Urbandale, Iowa-based Berkley Life and Health Insurance Co.

The outlook of these ratings is stable.

The ratings of Berkley Insurance and its units reflect their balance sheet, which A.M. Best categorizes as strongest, strong operating performance, favorable business profile and appropriate enterprise risk management.

The ratings of Berkley Life and Health reflect its balance sheet, which A.M. Best categorizes as strongest, adequate operating performance, limited business profile and appropriate enterprise risk management.

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A.M. Best withdrew the financial strength rating of B+ (Good) and the long-term issuer credit rating of "bbb-" of Cameron National Insurance Co.

Concurrently, A.M. Best affirmed the financial strength rating of B+ (Good) and the long-term issuer credit rating of "bbb-" of Cameron Mutual Insurance Co. The outlook of these ratings remains stable. Both companies are domiciled in Cameron, Mo.

The withdrawals reflect the migration of all business to Cameron Mutual from Cameron National and the termination of the quota share agreement between the two organizations, effective Jan. 1.

The ratings affirmations reflect Cameron Mutual's very strong balance sheet, marginal operating performance, limited business profile and marginal enterprise risk management. The stable outlooks reflect A.M. Best's expectation of improved operating performance and continued very strong balance sheet strength.

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Fitch affirmed London-based RSA Insurance Group Plc's long-term issuer default rating at A-.

The agency also affirmed Horsham, U.K.-based subsidiary Royal & Sun Alliance Insurance Plc's insurer financial strength rating at A and long-term issuer default rating at A-. The outlooks are stable.

The ratings of Royal & Sun Alliance reflect its strong capital and leverage, strong underwriting performance and a leading position in its core markets.

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Fitch affirmed Italy-based SIAT - Societa Italiana Assicurazioni e Riassicurazioni pA's insurer financial strength rating at BBB (Good). The outlook is stable.

The rating reflects the insurer's good business profile in the Italian marine insurance market, strong capital and extensive reinsurance coverage. Its insurer financial strength rating is constrained by Italy's sovereign rating due to its concentrated exposure to Italian sovereign debt.

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