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.
Financial guaranty
Moody's upgraded France-based Coface SA's long-term issuer rating to Baa1 from Baa2 following a change in methodology.
The outlook remains stable.
Moody's published a new cross sector methodology for assigning instrument ratings for insurers. The rating agency modified its guidance for rating certain insurance holding company instruments, and specifically now applies narrower notching for certain insurance groups domiciled in locations with enhanced regulatory supervision at a group-wide level.
A.M. Best affirmed the financial strength rating of A++ (Superior) and the long-term issuer credit ratings of "aa+" of New York-based Guardian Life Insurance Co. of America and its core subsidiaries, Guardian Insurance & Annuity Co. Inc. and Berkshire Life Insurance Co. of America.
Additionally, A.M. Best affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of "a+" of Chicago-based First Commonwealth Insurance Co.
The outlook of these ratings is stable.
The ratings of Guardian reflect its balance sheet, which A.M. Best categorizes as strongest, its strong operating performance, favorable business profile and very strong enterprise risk management.
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Moody's also upgraded the long-term issuer ratings of Norway-based Storebrand ASA to Baa3 from Ba1, Netherlands-based NN Group NV to Baa1 from Baa2 and U.K.-based Legal & General Group Plc to A2 from A3, after the publication of its new cross sector methodology for assigning instrument ratings for insurers.
Storebrand's outlook remains positive, while the outlooks for NN Group and Legal & General Group remain stable.
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Moody's downgraded Australia-based AMP Life Ltd.'s insurance financial strength rating to Aa3 from Aa2.
The outlook is negative.
The downgrade reflects the more challenging operating environment for life insurers and wealth managers in Australia, Moody's said.
The ratings outlook is negative, reflecting the uncertainty regarding any potential outcomes from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry that could further weaken AMP Life's credit profile. The company's parent company, AMP Ltd., is facing lawsuits over alleged incidents of misconduct.
Multiline
Fitch Ratings downgraded the insurer financial strength rating of Saudi Arabia-based Co. for Cooperative Insurance (Tawuniya) to A- (Strong) from A.
The outlook is stable.
Fitch said the downgrade was driven by a 1 billion Saudi riyal reserve strengthening in the fourth quarter of 2017, which resulted in an overall loss for Tawuniya in 2017 and a reduction in retained earnings. The agency does, however, expects this reserve strengthening to be one-off in nature. It also said that Tawuniya will likely return to underwriting profitability in 2018.
The insurer's rating is supported by its strong business profile in the Saudi Arabia insurance market, strong underlying earnings generation and adequate capitalization, according to Fitch.
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Moody's upgraded the long-term issuer rating of Unipol Gruppo SpA to Ba1 from Ba2 and placed the rating under review for downgrade.
The insurance financial strength rating of Baa2 assigned to main operating subsidiary UnipolSai Assicurazioni SpA was also placed on review for downgrade.
The outlooks were changed to rating under review from negative. The agency took the ratings actions following the review for downgrade on the Italian government's Baa2 debt rating.
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Moody's upgraded the long-term issuer ratings of Sampo Plc to A3 from Baa1 and Belgium-based Ageas SA/NV to Baa2 from Baa3 following the change in methodology for insurers.
Sampo's outlook remains stable, while Ageas' outlook remains positive.
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Moody's placed Allianz SpA on review for downgrade in the wake of the review for downgrade on the Italian government's Baa2 debt rating.
Concurrently, the rating agency has affirmed the Baa1 insurance financial strength ratings of Assicurazioni Generali SpA and Generali Italia SpA. The outlook remains stable.
Moody's believes that the three insurance companies' key credit fundamentals — asset quality, capitalization, profitability and financial flexibility — are linked to Italy's economic and market conditions.
The placing of Allianz SpA's insurance financial strength rating on review for downgrade reflects the company's direct exposure to Italian sovereign risk in terms of both investment portfolio and business profile.
Moody's said the affirmation of Assicurazioni Generali and the stable outlook largely reflects the Generali group's diversification outside Italy. In taking ratings actions on Generali Italia, the rating agency considers that Generali Italia's rating benefits from implicit support from Assicurazioni Generali.
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S&P Global Ratings revised the outlook on Canada-based Fairfax Financial Holdings Ltd. and its subsidiaries to positive from stable.
The agency affirmed its BBB- long-term issuer credit rating on the holding company and its A- long-term financial strength and issuer credit ratings on Fairfax's rated core and strategically important operating subsidiaries.
The outlook revision reflects an upward trend in operating earnings, which, along with other considerations, could strengthen S&P's view of the holding company's credit profile.
The positive outlook reflects the expansion of operating earnings primarily driven by an increase in investment earnings that should lead to steady improvement in debt serviceability and support prospective capitalization in the next two to three years, S&P said.
Property and casualty
A.M. Best upgraded the long-term issuer credit rating to "a+" from "a" and affirmed the financial strength rating of A (Excellent) of Wisconsin-based West Bend Mutual Insurance Co.
The outlook of the long-term issuer credit rating has been revised to stable from positive, while the outlook of the financial strength rating remains stable.
The ratings reflect West Bend's balance sheet, which A.M. Best categorizes as strongest, its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The upgrade of the long-term issuer credit rating considers West Bend's strict underwriting guidelines and strong claims handling practices leading to strong underwriting over the past five-year period, which have outperformed the commercial casualty composite.
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Moody's upgraded Australia-based QBE Insurance Group Ltd.'s issuer rating to A3 from Baa1 following the change in methodology related to insurers.
The ratings outlook is negative.
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S&P affirmed its A- long-term issuer credit ratings on Bermuda-based Everest Re Group Ltd. and its intermediate holding company, Everest Reinsurance Holdings Inc.
The agency also affirmed its A+ issuer credit and financial strength ratings on the core operating companies. The outlook is stable.
The affirmation reflects S&P's view that Everest has defended well its very strong competitive position as one of the top 10 global reinsurers, with a strong brand name and long-standing presence in the property and casualty reinsurance sector.
The stable outlook reflects the agency's view that Everest will sustain and defend its position by leveraging the moderate price increases in the global P&C reinsurance sector in 2018, while strengthening its insurance franchise.
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S&P affirmed its B long-term issuer credit ratings on U.K.-based Hyperion Insurance Group Ltd. and the company's two financing subsidiaries, HIG Finance 2 Ltd. and Hyperion Refinance SARL.
The outlook is stable.
The affirmation follows Hyperion's announced intention to issue a €50 million add-on to its €200 million term loan facility. The company intends to use the proceeds for general corporate purposes, including funding acquisitions, purchasing minority interest positions and making deferred consideration payments. At the same time, the company will reprice its existing term loan facilities.
The stable outlook reflects S&P's view that the combined group will achieve annual organic growth of about 6% over the next two years.
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S&P affirmed its A- long-term issuer credit and insurer financial strength ratings on Nigeria-based African Reinsurance Corp. and its A- long-term insurer financial strength rating on the company's subsidiary, African Reinsurance Corp. (South Africa) Ltd.
The outlooks on both entities are stable.
The affirmation reflects S&P's view that Africa Re continues to maintain its strong competitive position on the African continent.
The stable outlook reflects the agency's opinion that Africa Re will stay resilient within the tough operating environment in the many territories where it underwrites business, and therefore expects it to maintain net income from its core portfolio in line with historical averages over the next 12 to 24 months.
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 news brief can be found here, here, here and here.
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