S&P Global Market Intelligencecompiles ratings actions in the insurance space daily through 5:30 p.m. ET. Actionsafter 5:30 p.m. ET will be included in the following day's roundup.
FitchRatings affirmedthe B long-term issuer default rating of HRGGroup Inc. and revised the ratings outlook to negative from stable.
Fitchsaid the revision of the outlook to negative is driven by weakening upstream dividendcoverage of holding company interest expenses, reduced diversification of HRG'sportfolio following the expected saleof its interest in Fidelity &Guaranty Life Holdings Inc. to AnbangInsurance Group Co. Ltd. later in 2016, and longer-term strategic uncertaintygiven that HRG will effectively be operating as a single-investment, pass-throughstructure at least for a period of time after the sale.
The ratingagency further said the affirmations are supported by the credit risk profile andunderlying diversity of HRG's largest investment, Spectrum Brands Inc., which addsa degree of stability to HRG's upstream dividend flows, and HRG's strong liquidityposition, which is expected to improve further following the sale to Anbang. Theratings also incorporate Fitch's expectation of potential deleveraging followingthe close of the sale.
P&C
The outlookfor the financial strength rating has been revised to stable from positive, andthe outlook for the issuer credit rating remains positive.
A.M.Best said the ratings actions reflect the continuation of Spartan's solid operatingperformance, low liabilities, favorable underwriting leverage measures and continuedsurplus appreciation.
A.M.Best upgradedthe financial strength rating to A- from B++ and the issuer credit rating to "a-"from "bbb+" of Alabama MunicipalInsurance Corp.
The outlookfor each rating has been revised to stable from positive.
A.M.Best said the ratings upgrade reflects the company's improved risk-adjusted capitalization,favorable operating results and low underwriting leverage.
A.M.Best affirmedthe "bbb+" issuer credit rating of Safety Insurance Group Inc. and the A financial strengthratings and "a+" issuer credit ratings of subsidiaries , and
The outlookfor each rating is stable.
A.M.Best said the group's ratings reflect its solid risk-adjusted capitalization, primarilydriven by conservative investment risk; favorable loss reserve development trends;and controlled premium growth.
In addition,Safety has historically reported strong operating performance, the rating agencysaid. The positive rating factors are derived from management's disciplined underwritingapproach and successful history in dealing with the challenges in Massachusetts,where it writes the majority of its business. Furthermore, the group's publiclytraded parent, Safety Insurance Group, affords some financial flexibility.