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Insurance ratings actions: A.M. Best acts on Yosemite Insurance

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Insurance ratings actions: A.M. Best acts on Yosemite Insurance

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 placed under review with developing implications the financial strength rating of B (Fair) and the long-term issuer credit rating of "bb+" of Evansville, Ind.-based Yosemite Insurance Co.

The ratings actions follow OneMain Holdings Inc.'s recent announcement of its entry into a definitive share purchase agreement with a third party to sell all the shares of Yosemite, its wholly owned subsidiary, according to A.M. Best.

The developing implications reflect the uncertainty of Yosemite's capital position or expected business operations under the new management.

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A.M. Best assigned a financial strength rating of B++ (Good) and a long-term issuer credit rating of "bbb+" to Brookfield Annuity Co., a wholly owned subsidiary of Canada-based Brookfield Asset Management Inc.

The outlook assigned to these ratings is stable.

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

The balance sheet strength is assessed on the company's five-year business plan with a very high level of capital injected into the business at startup by the parent company.

Brookfield Annuity is a monoline carrier in the pension risk transfer market in Canada.

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Moody's confirmed WellCare of Florida Inc.'s Baa2 insurance financial strength rating with a stable outlook.

The action concludes the review for downgrade announced in May. The rating reflects consistent growth, decent geographic diversity, solid capital levels and low leverage relative to peers.

Europe

S&P Global Ratings placed the A- ratings on Swiss Re ReAssure Ltd. on Credit Watch Negative after Swiss Re Group indicated that it is exploring the possibility of an IPO of its U.K.-based closed-book consolidator ReAssure Ltd.

ReAssure is one of the main operating entities of the Swiss Re Life Capital business unit considered to be highly strategic to the Swiss Re Group.

S&P believes that, following any potential IPO, the remaining business will comprise ElipsLife and IptiQ, which are both relatively small primary life insurers, and Swiss Re's share in Swiss Re ReAssure. The agency is unlikely to continue viewing the business unit as highly strategic following a review.

Middle East and Africa

S&P withdrew its BBB- issuer credit and insurer financial strength ratings on Morocco-based reinsurer Société Centrale de Réassurance.

The outlook was stable at the time of withdrawal.

Asia Pacific

Fitch Ratings affirmed Australia-based QBE Lenders' Mortgage Insurance Ltd.'s insurer financial strength rating at AA- (Very Strong) with a stable outlook.

The affirmation reflects the company's strong business profile, very strong capitalization and consistent financial performance. It also reflects ongoing developments within the industry — increasing self-insurance, regulatory-driven changes and adverse selection that presents downside risks to the lenders' mortgage insurance business model.

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 feature can be found here and here.

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