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Insurance ratings actions: A.M. Best upgrades CAMICO; S&P downgrades Wethaq

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Insurance ratings actions: A.M. Best upgrades CAMICO; S&P downgrades Wethaq

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 has affirmed the financial strength ratings of A++ (Superior) and the long-term issuer credit ratings of "aaa" of Teachers Insurance & Annuity Association of America and its wholly owned insurance subsidiary TIAA-CREF Life Insurance Co.

The outlook of these ratings is stable.

The ratings reflect the companies' strongest balance sheet strength, their very strong operating performance, very favorable business profile and very strong enterprise risk management, A.M. Best said.

Multiline

S&P Global Ratings has lowered its long-term issuer credit and financial strength ratings on Kuwait-based Wethaq Takaful Insurance Co. K.S.C.P. (Closed) to B from B+.

The ratings remain on CreditWatch with negative implications.

S&P said the downgrade follows Wethaq's publication of its first-quarter 2018 financial statements, which include two qualified opinions, one on doubtful debts amounting to 1.6 million Kuwaiti dinars not provided for, and a second for its investment property under its Egyptian subsidiary with no financial statements or information available.

S&P also revised its forecasts on Wethaq's capital adequacy based on the expected provision for doubtful debts, resulting in a weaker capital adequacy assessment.

Additionally, the agency believes that the company's liquidity remains under stress since its liquid assets are still lower than its short-term obligations.

The rating agency intends to resolve the CreditWatch in the next 90 days based on the company's evolving issues regarding liquidity, capital adequacy and financial reporting.

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Fitch Ratings has revised Ethias SA's outlook to positive from stable while affirming the company's insurer financial strength rating at BBB+ (Good) and long-term issuer default rating at BBB.

The revision of Ethias' outlook to positive reflects Fitch's view that the likely full repayment of Vitrufin SA debt and the full disposal of the insurer's capital-intensive individual life portfolio will lead to a strengthening in Ethias' capitalization, profitability and financial flexibility. Vitrufin is the parent company of Ethias.

Additionally, the ratings reflect Ethias's strong capital position, sound profitability and strong business profile in Belgium, Fitch said.

Property and casualty

A.M. Best has upgraded the financial strength rating to B++ (Good) from B+ (Good) and the long-term issuer credit rating to "bbb" from "bbb-" of CAMICO Mutual Insurance Co.

The outlook was revised to stable from positive.

The ratings reflect the company's very strong balance sheet strength, its marginal operating performance, limited business profile and appropriate enterprise risk management, A.M. Best said.

The rating upgrades reflect the continued improvement in the company's underwriting performance in recent years due to corrective actions taken by management, which include improved customer profile, reduced limits profile, reinsurance changes, claims management changes, among other factors, according to the rating agency.

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A.M. Best has removed from under review with negative implications and downgraded the financial strength rating to B (Fair) from B+ (Good) and the long-term issuer credit rating to "bb+" from "bbb-" of One Alliance Insurance Corp.

The outlook is stable.

The ratings were placed under review with negative implications Feb. 1 due to the uncertainty surrounding a previously planned capital contribution, the agency said.

The ratings actions are due to the significant decline in the company's policyholder surplus since the start of operations, driven by poor underwriting and operating performance, A.M. Best said.

Furthermore, the ratings reflect One Alliance's adequate balance sheet strength, its marginal operating performance, limited business profile and appropriate enterprise risk management, the rating agency added.

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A.M. Best has downgraded the financial strength rating to C++ (Marginal) from B- (Fair) and the long-term issuer credit rating to "b" from "bb-" of Golden Insurance Co. A Risk Retention Group.

The outlook is negative.

Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best's rating process.

The ratings reflect the company's weak balance sheet strength, its marginal operating performance, limited business profile and marginal enterprise risk management, the rating agency said.

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A.M. Best has revised the outlooks to positive from stable and affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of "a-" of Southern Mutual Church Insurance Co.

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

The revision in the outlooks reflects the favorable trend in the company's underwriting and overall operating performance in recent years, which continues to strengthen its balance sheet, A.M. Best noted.

Meanwhile, the rating affirmations reflect the company's very strong risk-adjusted capital levels, the management team's long-term experience in their niche and focus on underwriting fundamentals, according to the rating agency.

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A.M. Best has affirmed the financial strength ratings of A- (Excellent) and the long-term issuer credit ratings of "a-" of State Automobile Mutual Insurance Co. and its operating subsidiaries, State Auto Property & Casualty Insurance Co., Milbank Insurance Co., State Auto Insurance Co. of Ohio, Patrons Mutual Insurance Co. of Connecticut, Meridian Security Insurance Co., State Auto Insurance Co. of Wisconsin, Rockhill Insurance Co., Plaza Insurance Co., American Compensation Insurance Co. and Bloomington Compensation Insurance Co.

Concurrently, A.M. Best has affirmed the long-term issuer credit ratings of "bbb-" of State Automobile Mutual Insurance's intermediate holding company, State Auto Financial Corp.

The outlook of these ratings is stable.

The ratings reflect State Automobile Mutual Insurance's strongest balance sheet strength, its marginal operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also reflect the company's long-standing regional market presence, well-established agency relationships, solid brand name recognition and diversified product offerings, A.M. Best said.

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Fitch Ratings has affirmed the A (Strong) insurer financial strength ratings on The Doctors Co. An Inter-Insurance Exchange and its wholly owned insurance subsidiaries, American Physicians Assurance Corp., First Professionals Insurance Co. Inc., OHIC Insurance Co., TDC Specialty Insurance Co., TDC National Assurance Co. and Doctors Co. Risk Retention Group A Reciprocal Exchange.

Fitch has also affirmed the long-term issuer default rating at A- of The Doctors Co. An Inter-Insurance Exchange.

The ratings outlook for all ratings is stable.

The group's ratings are based on historically strong but more recently declining profitability and underwriting performance, sufficient loss reserve levels, very strong statutory capital position, Fitch said.

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Fitch Ratings has affirmed the issuer default rating at A- of ProAssurance Corp.

Fitch has also affirmed the insurer financial strength ratings at A (Strong) with a stable outlook of ProAssurance's subsidiaries Allied Eastern Indemnity Co., Eastern Alliance Insurance Co., Eastern Advantage Assurance Co., Medmarc Casualty Insurance Co., Noetic Specialty Insurance Co., PACO Assurance Co. Inc., Podiatry Insurance Co. of America, ProAssurance Casualty Co., ProAssurance Indemnity Co. Inc. and ProAssurance Specialty Insurance Co. Inc.

Fitch has also revised the ratings outlook to negative from stable.

The rating affirmation considers the company's very strong capital and profitability, low financial leverage, and favorable reserve experience, according to the rating agency.

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Fitch Ratings has affirmed Enstar Group Ltd.'s long-term issuer default rating at BBB.

The ratings outlook has been revised to positive from stable, which reflects the company's continued expansion of its leading market position in acquiring and managing non-life runoff companies, Fitch said.

Meanwhile, the affirmation reflects Enstar's reasonable financial leverage and very strong earnings coverage, Fitch added.

As of June 11, US$1 was equivalent to 0.30 Kuwaiti dinar.

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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