S&P Global Ratings on Aug. 4 revised the outlook on Liverpool Victoria Friendly Society Ltd. units Liverpool Victoria Insurance Co. Ltd. and Highway Insurance Co. Ltd. to positive from stable, after the group agreed to sell up to a 49% stake in its general insurance operations to Allianz Group.
The agency also affirmed the units' long-term local-currency financial strength ratings at BBB+, and affirmed Liverpool Victoria Friendly Society's long-term local-currency counterparty credit and financial strength ratings at BBB+, with a stable outlook.
The positive outlook on the general insurance units reflects potential support from Allianz, which will acquire a further 20.9% of LV='s general insurance business in 2019. The agency noted that it expects the deal to weaken the competitive position of Liverpool Victoria Friendly Society, given the concentration on life business that will result, but that this effect will not be enough to change S&P's assessment of the company.
S&P expects that Liverpool Victoria Friendly Society will maintain its competitive position and that its capital adequacy will strengthen and stabilize at the "strong" level.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.