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Insurance ratings actions: Fitch assigns ratings to Athene's reinsurers

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Insurance ratings actions: Fitch assigns ratings to Athene's reinsurers

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 revised the outlooks to positive from stable and affirmed the B++ financial strength rating and the "bbb+" long-term issuer credit rating of Columbia Lloyds Insurance Co. and MDOW Insurance Co.

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

The positive outlook reflects the underwriting and operating performance metrics that outperform the composite driven by its management's corrective actions, including decreasing exposures and enforcing strict underwriting guidelines. Combined with the company's prudent reinsurance program, these actions led to improved profitability for the company, according to A.M. Best.

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A.M. Best upgraded the financial strength rating to B++ from B+ and the long-term issuer credit rating to "bbb+" from "bbb-" of Cincinnati Equitable Life Insurance Co. The rating agency also removed the company's rating from under review with positive implications. The outlook is stable.

The ratings reflect the company's balance sheet strength, which A.M. Best categorizes as strong, and its marginal operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect the strength and support of affiliate Michigan Farm Bureau Group, following Cincinnati Equitable Life's acquisition by Michigan Farm Bureau Financial Corp. on Sept. 30.

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Fitch Ratings assigned the A insurer financial strength ratings to Athene Holding Ltd.'s recently formed reinsurers, Athene Co-Invest Reinsurance Affiliate 1A Ltd. and Athene Co-Invest Reinsurance Affiliate 1B Ltd. The outlook is stable.

The ratings reflect the application of the rating agency's captive insurance companies rating methodology and the view that the companies meet the rating agency's core captive standards.

The rating agency treats the companies as core captives due to its view that Athene has a strong willingness and ability to support the companies and that the reinsurers' goals are closely tied to Athene's.

Europe

Fitch assigned the A insurer financial strength rating to Dialog Lebensversicherungs-AG. The outlook is negative.

The rating reflects the company's core status within the Generali group, supported by its 100% ownership and profit-and-loss agreements with Generali Deutschland AG, according to Fitch.

The negative outlook reflects the outlook on its ultimate parent, Generali.

Middle East and Africa

Fitch affirmed the BB- insurer financial strength rating of KAFOLAT Insurance Co. JSC. The outlook is stable.

The rating reflects the company's state ownership, its moderate business profile and record of sound profitability in recent years, which are offset by its high investment risks.

The rating agency views the company's business profile as moderate compared with other players in Uzbekistan, driven by the company's favorable competitive positioning and moderate business diversification.

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S&P Global Ratings assigned the zaAA- long-term and zaA-1+ short-term South Africa national scale issuer credit ratings to Old Mutual Ltd.

The ratings are based on the group's overall creditworthiness and its structural subordination as a nonoperating holding company.

Old Mutual is the ultimate holding company of Old Mutual Life Assurance Co. (South Africa) Ltd., which has a strong position in the South African life insurance market.

Asia-Pacific

Fitch affirmed the BBB+ insurer financial strength rating and the BBB long-term issuer default rating of Heungkuk Life Insurance Co. Ltd. The outlook is stable.

The ratings reflect the company's moderate business profile, good capitalization and financial performance. The ratings also consider the ongoing challenges the company is facing related to improving its capital adequacy amid a tightening regulatory environment, according to Fitch.

The rating agency assessed the company's business profile as moderate, compared to other Korean life insurers, which is underpinned by its position as a midsize player in the domestic market.

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S&P Global Ratings affirmed the A long-term insurer financial strength and issuer credit ratings of Challenger Life Co. Ltd. The rating agency also affirmed the BBB+ long-term issuer credit rating on holding company Challenger Ltd.

The outlooks are positive, reflecting the rating agency's view that Challenger Life and the broader group could expand their income streams while benefiting from financial retirement product space reforms in Australia.

The ratings reflect the company's strong but concentrated business position in the annuities market in Australia and its robust capital.

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S&P Global Ratings affirmed the A+ financial strength and long-term issuer credit ratings of Aflac Life Insurance Japan Ltd.

The outlook is positive, reflecting that of Aflac Inc.'s other core subsidiaries.

The ratings reflect the rating agency's view that the company is a core subsidiary of the Aflac group.

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S&P Global Ratings affirmed the A long-term insurer financial strength and issuer credit ratings of OnePath Life (NZ) Ltd.

The outlook is negative, reflecting the negative outlook on its parent Cigna Corp., which is driven by risks associated with the group's business performance, leverage and capital adequacy. The rating agency views the company as strategically important to Cigna.

The rating is supported by the company's stand-alone credit characteristics, including its solid market share, multichannel distribution and sound but volatile reported earnings.

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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