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Insurance ratings actions: Fitch affirms Stewart after Fidelity deal termination

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

A.M. Best affirmed the financial strength ratings of B++ and the long-term issuer credit ratings of "bbb+" of Aultcare Health Insuring Corp. and subsidiary Aultcare Insurance Co. The outlook was revised to stable from positive.

The ratings reflect the companies' balance sheet strength, which A.M. Best categorizes as strong, as well as their adequate operating performance, limited business profile and marginal enterprise risk management.

The outlook revision was based on a decrease in overall risk-adjusted capitalization in 2018, as measured by Best's Capital Adequacy Ratio. The affirmation recognizes the companies' conservative investment portfolio and sound balance sheet liquidity which is steered by generally positive operating cash flow.

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Fitch Ratings affirmed the BBB long-term issuer default rating of Stewart Information Services Corp. and the A- long-term insurer financial strength ratings of title insurance subsidiaries Stewart Title Insurance Co. and Stewart Title Guaranty Co. Inc. The outlook is stable.

The rating agency also removed the ratings from Rating Watch Positive, caused by the termination of the company's merger agreement with Fidelity National Financial Inc., which failed to receive regulatory approvals from the Federal Trade Commission and the New York Department of Financial Services.

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Kroll Bond Rating Agency affirmed the A- insurance financial strength rating of Guaranty Income Life Insurance Co., a subsidiary of Kuvare US Holdings Inc. The outlook is stable.

The rating considers the company's niche focus, experienced management team, sound capitalization, favorable earnings trends and the financial support and commitment of the parent and its capital partners, the rating agency said.

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S&P Global Ratings affirmed the BBB long-term issuer credit rating of ProAssurance Corp.

The affirmation comes after the implementation of the rating agency's revised insurers rating methodology criteria, which was published July 1.

The outlook is stable, reflecting S&P Global Ratings' expectation that the company will sustain its capital adequacy and underwriting discipline.

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S&P Global Ratings affirmed the BB- long-term issuer credit rating of Molina Healthcare Inc.

The outlook is stable, taking into consideration the rating agency's view that the company will generate solid operating results in 2019 to 2020.

The ratings reflect Molina Healthcare's national profile as a managed care carrier for low-income government-subsidized populations, some geographic diversity in 13 states and Puerto Rico, and improving earnings.

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S&P Global Ratings withdrew the BB long-term issuer credit and financial strength ratings of Nassau Life Insurance Co., the B long-term issuer credit rating of Nassau Cos. of New York and the CCC+ long-term issuer credit and financial strength ratings of PHL Variable Insurance Co.

The ratings were withdrawn at the company's request. The outlook was negative at the time of withdrawal.

Europe

S&P Global Ratings affirmed the A- long-term insurer financial strength rating of Credendo - Single Risk Insurance AG.

The outlook is stable, considering the rating agency's view that the company will stay strategically important to parent Credendo - Export Credit Agency and keep its stand-alone credit profile by improving underwriting results throughout the coming years while preserving excellent capital level.

In its assessment, S&P Global Ratings takes into account the company's excellent level of capital and extensive reinsurance protection in place, as well as the narrow business position and a lack of sustainable underwriting profitability after reported losses in the past three accounting years.

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S&P Global Ratings affirmed the BBB+ financial strength rating of Dina Försäkring AB, a core company within the Dina Federation.

The outlook is stable, taking into account the rating agency's expectation that Dina Försäkring will preserve its solid levels of capital and expand in line with the market. S&P Global Ratings also anticipates that the company's underwriting profitability will remain at least at current levels.

The rating considers the company's limited market share within the concentrated Swedish nonlife market, according to the rating agency.

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S&P Global Ratings affirmed the B+ long-term insurer financial strength and issuer credit ratings of Lexgarant Insurance Co. Ltd.

The outlook was changed to positive from stable, reflecting the rating agency's expectation that Lexgarant's gross premiums written will improve, combined loss and expense ratios will grow, and capital adequacy will remain protected.

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S&P Global Ratings affirmed the A- long-term insurer financial strength, issuer credit and financial enhancement ratings of Garantia Insurance Co. Ltd.

The outlook is stable, taking into account the rating agency's view that the company will keep its strong niche position in the Finnish credit insurance market and its capital resources above S&P Global Ratings' AAA capital requirement over the next 12 to 24 months.

The ratings reflect Garantia's dominant position in the niche credit insurance segment in Finland.

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S&P Global Ratings assigned a BB long-term issuer credit rating to non-operating holding company RGI Holdings (Luxembourg) SARL.

The outlook is stable, mirroring that on the company's parent, SPAO Reso Garantia. It assumes no debt at the holding company level.

The rating is two notches below the "bbb-" assessment of Reso Garantia's group credit profile, indicating S&P Global Ratings' view of RGI Holdings as a non-operating holding company that leads to the structural subordination of its obligations, versus those of Reso Garantia as an operating entity.

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S&P Global Ratings affirmed the A insurer financial strength and issuer credit ratings of North of England Protecting & Indemnity Association Ltd. and North of England Mutual Insurance Association (Bermuda) Ltd.

The A insurer financial strength ratings of Sunderland Marine Insurance Co. Ltd. and North of England Protecting & Indemnity DAC were also affirmed.

The outlook is stable, indicating the rating agency's expectation that the companies will remain focused on controlled growth in a difficult market environment, preserve their competitive position and attain profitable operating performance in the long term.

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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