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Insurance ratings actions: Moody's downgrades Infinity Property subsidiaries

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Insurance ratings actions: Moody's downgrades Infinity Property subsidiaries

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

Moody's has downgraded the insurance financial strength ratings to A3 from A2 of the principal operating subsidiaries of Birmingham, Ala.-based Infinity Property and Casualty Corp. with a stable outlook.

The subsidiaries are Infinity Insurance Co., Infinity Standard Insurance Co., Infinity Casualty Insurance Co., Infinity Select Insurance Co., Infinity Auto Insurance Co., Infinity Preferred Insurance Co., Infinity Indemnity Insurance Co., Infinity Assurance Insurance Co., Infinity Safeguard Insurance Co. and Infinity Security Insurance Co.

The action was taken following the completion of the company's acquisition by Kemper Corp.

Moody's expects Kemper to increase Infinity's investment risk over time to better align with Kemper's investment risk appetite. The agency added that Infinity's capitalization could be lower if Kemper were to use dividends from Infinity to help fund the transaction or repay debt.

Infinity's ratings reflect the group's "established" franchise within the independent agency channel in nonstandard automobile insurance, good capital adequacy and profitable track record, Moody's stated.

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Moody's has affirmed the B3 corporate family rating and changed the outlook to positive from stable of Clearwater, Fla.-based AmeriLife Group LLC.

The agency noted the broker's good market position in delivering health, fixed annuity, life and supplemental products to the growing senior population.

The outlook was changed due to AmeriLife's declining financial leverage, good EBITDA margins and healthy cash flow.

Middle East and Africa

A.M. Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit ratings of "a" of Kuwait-based Gulf Insurance Group K.S.C.P. and its subsidiary, Gulf Insurance and Reinsurance Co. K.S.C. (Closed), with a stable outlook.

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

Three other subsidiaries were also affirmed.

The agency affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of "a-" of Bahrain Kuwait Insurance Co. B.S.C. with a stable outlook.

A.M. Best pointed to the company's very strong balance sheet, strong operating performance, neutral business profile and appropriate enterprise risk management.

The financial strength rating of B++ (Good) and the long-term issuer credit rating of "bbb" of Jordan-based Arab Orient Insurance Co. were affirmed with a negative outlook.

The ratings were based on its strong balance sheet, adequate operating performance, neutral business profile and marginal enterprise risk management. The negative outlook reflects the execution risk associated with the company's profitability targets.

Additionally, A.M. Best has affirmed the financial strength rating of B++ (Good) and the long-term issuer credit rating of "bbb" of Egypt-based Arab Misr Insurance Group Co. S.A.E. with a stable outlook.

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

Asia Pacific

A.M. Best has placed under review with developing implications the financial strength rating of A+ (Superior) and the long-term issuer credit rating of "aa-" of New Zealand-based Sovereign Assurance Co. Ltd.

These actions follow an announcement on July 2 that AIA International Ltd., a wholly owned subsidiary of AIA Group Ltd., has completed its acquisition of Sovereign from the Commonwealth Bank of Australia.

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A.M. Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of "a-" of Foundation Life (NZ) Ltd. with a stable outlook.

The affirmation was due to the company's very strong balance sheet, adequate operating performance, limited business profile and appropriate enterprise risk management.

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Fitch Ratings has upgraded Japan-based Asahi Mutual Life Insurance Co.'s insurer financial strength rating to BBB- (Good) from BB+ (Moderately Weak) and its long-term issuer default rating to BB+ from BB with a stable outlook.

The improvement in Asahi Life's capitalization and financial leverage, as well as its resilient financial performance and earnings backed by steady growth in the profitable health sector, prompted the upgrade.

The company's financial leverage improved to 34% by end-March, from 37% at the end of the prior-year month, due to continued accumulation of core capital, Fitch noted.

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Moody's has affirmed the A1 insurance financial strength rating of Japan-based Meiji Yasuda Life Insurance Co. with a stable outlook.

The affirmation reflects Meiji Yasuda Life's very strong market position and brand, very strong distribution control and very strong capitalization, the agency said.

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