S&P Global Market Intelligence compiles ratings actions in the insurance space daily through 5:30 p.m. ET. Actions after 5:30 p.m. ET will be included in the following day's roundup.
Life and health
A.M. Best assigned a financial strength rating of A and a long-term issuer credit rating of "a+" to Generation Life Insurance Co.
The outlook on the credit rating is stable. According to A.M. Best, Swiss Re Ltd., Generation Life's ultimate parent, would support the company as required. A.M. Best is of the view that Generation Life would get quota share reinsurance protection from entities under its parent. Swiss Re acquired Generation Life during the third quarter of 2016. The rating reflects an expectation that Generation Life will have supportive risk-adjusted capitalization and a conservative investment strategy with sufficient liquidity to fund potential cash outflows.
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A.M. Best revised the outlook to positive from stable and affirmed the financial strength rating of B++ and long-term issuer credit rating of "bbb+" of Colorado Bankers Life Insurance Co.
The revised outlook reflects material improvement to the company's risk-adjusted capitalization, reduced sensitivity to interest rates in its reserve profile, organic premium growth in its core lines of business and solid profitability. A.M. Best expects all these factors to continue with the implementation of current and upcoming integration efficiencies.
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A.M. Best downgraded the long-term issuer credit rating to "bb" from "bb+" and affirmed the B financial strength rating of Bankers Life Insurance Co. and placed the ratings under review with positive implications.
According to A.M. Best, the downgrade reflects that Bankers Life does not benefit from ownership by Bankers Insurance Group Inc. The agency's under review status reflects the evolving business and financial strategies for the insurer as a member of Eli Global's insurance operations. Bankers Life was acquired by the Eli Global family of companies.
Bankers Life's ratings will remain under review with positive implications until discussions with the new management are complete and management provides more information about its business and capitalization plans, A.M. Best said.
Fitch Ratings affirmed Hiscox Ltd.'s core entities' insurer financial strength rating of A+ and the long-term issuer default ratings of all Hiscox holding companies at A-.
The outlook is stable. Fitch's ratings reflect Hiscox's solid capitalization, strong underwriting performance and conservative approach toward reserving. Fitch noted that ratings are constrained by the company's moderate market position and medium size. The agency acknowledged that the operating environment remains challenging and that rates are under pressure, especially in the company's London business. Aviation, marine, energy and U.S. big-ticket property faced the most pressure.
Fitch also affirmed the A+ rating and stable outlook for Hiscox Insurance Co. Ltd., Hiscox Insurance Co. (Guernsey) Ltd. and Hiscox Insurance Co. (Bermuda) Ltd. The agency affirmed an A- rating on the long-term issuer default rating and stable outlook for Hiscox Plc and Hiscox Ltd.
A.M. Best affirmed the A+ financial strength ratings and "aa-" long-term issuer credit ratings of Swiss Reinsurance Co. Ltd. and its affiliates.
A.M. Best also affirmed the related long- and short-term issue credit ratings of the company and its subsidiaries. The outlook has been affirmed as stable. According to A.M. Best, the ratings reflect Swiss Re's excellent consolidated risk-adjusted capitalization, strong operating performance and superior business profile. The agency said the group has been able to return capital to its investors due to strong internal capital generation. A.M. Best expects the full-year 2016 combined ratio to be greater than in 2015, with the increase reflecting lower expected favorable reserve developments and higher catastrophe losses.
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A.M. Best downgraded the financial strength rating to B+ from B++ and the long-term issuer credit rating to "bbb-" from "bbb" of Security America Risk Retention Group Inc.
The outlook has been revised to negative from stable.
According to A.M. Best, the ratings and outlook changes reflect a sizable surplus drop and adverse reserve development, mainly driven by a sizable claim involving extra contractual obligation coverage that in the company's opinion was not provided for and was therefore not reimbursable by the company's reinsurance program. The downgrade and negative outlook also take into consideration the corresponding material decline in risk-adjusted capitalization associated with the surplus decline and uncertainty about future results based on the company's current exposures, the rating agency said.
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A.M. Best stated that the financial strength rating of A and the long-term issuer credit ratings of "a" for the members of Donegal Insurance Group are unchanged after the recent announcement of its affiliation with Mountain States Insurance Group.
The outlook for the member entities of Donegal remains stable.
The rating reflects A.M. Best's expectation that the affiliation will not have a material impact on Donegal's balance sheet strength or earnings.
A.M. Best also placed under review with positive implications the financial strength rating of B++ and the long-term issuer credit ratings of "bbb+" of the members of Mountain States Insurance Group, led by Mountain States Mutual Casualty Co. A.M. Best assigned the under review status following the company's decision to enter into a definitive agreement and merger with Donegal Mutual Insurance Co.
The status reflects A.M. Best's expectation that surviving members of the group will derive financial strength and operational benefits from being affiliated with Donegal. The affiliation is a chance to improve underwriting results by eliminating a fronting arrangement and enhancing business profile and governance as a part of a larger entity.
A.M. Best placed Mountain States Mutual Casualty Co., Mountain States Indemnity Co. and Mountain States Commercial Insurance Co. under review with positive implications.