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 affirmed the A+ financial strength ratings and "aa" long-term issuer credit ratings of Western & Southern Financial Group Inc.'s life insurance subsidiaries.
Western & Southern Financial's affiliate companies include Western & Southern Life Insurance Co., Western-Southern Life Assurance Co., Columbus Life Insurance Co., Integrity Life Insurance Co., National Integrity Life Insurance Co. and Lafayette Life Insurance Co.
The outlook on the ratings is stable.
The affirmations came as a reflection of the company's balance sheet, operating performance and business profile, as well as its "favorable liquidity and strong financial flexibility," A.M. Best said. The ratings also factor in the diversity in the company's product offerings and distribution channels with an emphasis on middle market individuals, financial institutions and asset management, which contributes to additional earnings diversification.
The rating agency also said the company's recent move to expand its distribution to Fidelity Investments could provide additional growth to its annuities business, on top of additional market share. A.M. Best did say the company's positive ratings factors were also offset by its operating returns, which are lower than industry totals thanks to high capitalization levels, moderate retention of redundant reserves and modest adjusted statutory profitability in the company's ordinary life business.
Property and casualty
A.M. Best revised the outlooks to stable from negative and affirmed the financial strength rating of A+ and the long-term issuer credit ratings of "aa-" of the main non-life insurance subsidiaries of Zurich Insurance Group Ltd.
The affiliates are Zurich Insurance Plc, Fidelity & Deposit Co. of Maryland, Empire Fire & Marine Insurance Co., Empire Indemnity Insurance Co., Universal Underwriters Insurance Co., American Guarantee & Liability Insurance Co., American Zurich Insurance Co., Universal Underwriters of Texas Insurance Co., Steadfast Insurance Co., Zurich American Insurance Co., Zurich American Insurance Co. of Illinois, Colonial American Casualty & Surety Co., Rural Community Insurance Co. and Zurich Insurance Co. Ltd.
Additionally, A.M. Best has upgraded the financial strength rating to A+ from A and the long-term issuer credit rating to "aa-" from "a" for Zurich American Life Insurance Co.
The outlook for the life insurance company's ratings is stable.
At the same time, A.M. Best has revised the outlook to stable from negative and affirmed the long-term issuer credit rating of "a" of the holding company, Zurich Insurance Group Ltd.
The ratings of Zurich Insurance and its related subsidiaries reflect the group's "very strong" balance sheet strength, sustained competitive position in Europe and the U.S., and strong consolidated risk-adjusted capitalization. Additionally, the ratings of the subsidiaries reflect the group's overall strong operating performance.
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DBRS confirmed the A issuer rating of Intact Financial Corp. as well as the AA (low) issuer and financial strength ratings of its major operating unit Intact Insurance Co.
In addition, DBRS confirmed the AA (low) financial strength rating of the company's insurance subsidiaries, Intact Farm Insurance Inc., Jevco Insurance Co., La Compagnie d'assurance Belair Inc., Nordic Insurance Co. of Canada, Novex Insurance Co. and Trafalgar Insurance Company Of Canada.
All trends are stable.
In confirming the financial strength ratings of the operating insurance subsidiaries, DBRS takes into account Intact Financial's excellent franchise strength and risk profile, as well as its strong liquidity, earnings and capitalization. Overall, the company has exhibited strong and largely stable key financial metrics, the rating agency said.
It has closed its One Beacon acquisition and is in the process of integrating the business. "As this is the first sizable cross-border acquisition, it presents additional challenges for the company," DBRS said. Given Intact's previous track record on integrations, DBRS expects the company to improve One Beacon's profitability and expand its specialty lines' offerings in the Canadian domestic market.
The stable trends consider the company's well-executed strategy focused on claims and underwriting results, strong distribution, technological innovation and its resilient earnings profile, the rating agency said.
