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Insurance ratings actions: Fitch affirms Travelers, 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

A.M. Best upgraded the financial strength ratings to B++ from B+ and the long-term issuer credit ratings to "bbb" from "bbb-" of South Carolina Farm Bureau Mutual Insurance Co. and Palmetto Casualty Insurance Co. The outlook is stable.

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

The upgrades reflect the group's improved enterprise risk management capabilities, such as enhancements in the group's reinsurance program and overall risk appetite.

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Fitch Ratings affirmed the long-term issuer default rating of A+ and the short-term issuer default rating of F1 of Travelers Cos. Inc. The AA insurer financial strength ratings of the members of the Travelers intercompany pool and the Travelers group were also affirmed. The outlook is stable.

The Travelers intercompany pool members are American Equity Specialty Insurance Co., Discover Property & Casualty Insurance Co., Discover Specialty Insurance Co., Farmington Casualty Co., Fidelity and Guaranty Insurance Underwriters Inc., Northfield Insurance Co., Northland Casualty Co., Northland Insurance Co., St. Paul Fire and Marine Insurance Co., St. Paul Guardian Insurance Co., St. Paul Mercury Insurance Co., St. Paul Protective Insurance Co., St. Paul Surplus Lines Insurance Co., Automobile Insurance Co. of Hartford, Connecticut, Charter Oak Fire Insurance Co., Phoenix Insurance Co., Standard Fire Insurance Co., Travelers Casualty Co., Travelers Home and Marine Insurance Co., Travelers Indemnity Co., Travelers Indemnity Co. of America, Travelers Indemnity Co. of Connecticut, TravCo Insurance Co., Travelers Casualty and Surety Co., Travelers Casualty Co. of Connecticut, Travelers Casualty Insurance Co. of America, Travelers Commercial Casualty Co., Travelers Commercial Insurance Co., Travelers Constitution State Insurance Co., Travelers Excess and Surplus Lines Co., Travelers Personal Insurance Co., Travelers Personal Security Insurance Co., Travelers Property Casualty Co. of America, Travelers Property Casualty Insurance Co. and United States Fidelity and Guaranty Co.

The Travelers group members are American Equity Insurance Co., Fidelity and Guaranty Insurance Co., First Floridian Auto and Home Insurance Co., Gulf Underwriters Insurance Co., Select Insurance Co., Travelers Lloyds Insurance Co., Travelers Casualty and Surety Co. of America and Travelers Lloyds of Texas Insurance Co.

The rating agency also affirmed the long-term issuer default rating of A+ of Travelers Insurance Group Holdings Inc. and Travelers Property Casualty Corp.

Travelers' ratings are backed by very strong capitalization, very strong financial performance and earnings, very strong business profile, a history of favorable reserve development, and a top-tier competitive position in the U.S. property and casualty insurance market, according to Fitch.

Europe

A.M. Best affirmed the financial strength rating of B++ and the long-term issuer credit rating of "bbb" of Guernsey, U.K.-based GBG Insurance Ltd., a wholly owned subsidiary of GBGI Ltd., which consolidates the GBG group. The ratings were also removed from under review with positive implications.

The outlook assigned to the financial strength rating is stable, while the outlook assigned to the long-term issuer credit rating is positive.

The ratings actions follow the close of the acquisition of GBGI by Elm Bidco LP, as well as the completion of the rating agency's analysis of the GBG group's revised business plans and their impact on its rating fundamentals.

The positive outlook assigned to the long-term issuer credit rating reflects A.M. Best's expectation that the GBG group's balance sheet strength will improve in the medium term because of the strengthening of its risk-adjusted capitalization.

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

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A.M. Best affirmed the financial strength ratings of A and the long-term issuer credit ratings of "a+" of Switzerland-based MS Amlin AG and Lloyd's Syndicate 2001, which is managed by MS Amlin Underwriting Ltd. The outlook is stable.

MS Amlin AG's ratings reflect the company's balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Syndicate 2001's ratings reflect the balance sheet strength of the Lloyd's market, which A.M. Best categorizes as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

Asia-Pacific

Fitch affirmed the insurer financial strength rating of A- of China United Property Insurance Co. Ltd. The outlook is stable.

The affirmation considers the company's good capitalization, strong financial performance and favorable business profile, according to the rating agency. Also, the rating incorporates a one-notch uplift from its stand-alone credit profile to take into account its ownership by China Orient Asset Management Co. Ltd., Fitch said.

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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