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 affirmed the B+ financial strength rating and the "bbb-" long-term issuer credit rating of Missouri Valley Mutual Insurance Co. The outlooks were revised to stable from positive.
The ratings reflect the company's balance sheet strength, which A.M. Best categorizes as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The outlook revision is based on the company's flat to negative policyholders' surplus growth in recent years, driven by a deterioration in its underwriting results and operating performance due to an increased frequency and severity of storm losses, according to the rating agency.
A.M. Best upgraded the long-term issuer credit rating to "ccc+" from "cc" of First Acceptance Corp.
The rating agency also upgraded the financial strength ratings to B- from C++ and the long-term issuer credit ratings to "bb-" from "b" of First Acceptance's subsidiaries, First Acceptance Insurance Co. Inc., First Acceptance Insurance Company of Georgia Inc. and First Acceptance Insurance Co. of Tennessee Inc. The outlooks remain stable.
The ratings reflect the group's balance sheet strength, which A.M. Best categorizes as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management.
The upgrades reflect an upward revision in the group's balance sheet strength assessment due to the group's favorable pretax operating income and positive net income over the past two years, which led to policyholder surplus growth, according to the rating agency.
A.M. Best affirmed the B++ financial strength rating and the "bbb+" long-term issuer credit rating of Saucon Insurance Co. The outlook is stable.
The rating agency concurrently withdrew the ratings at the company's request to no longer participate in A.M. Best's interactive rating process.
The ratings reflect the company's balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, very limited business profile and appropriate enterprise risk management.
A.M. Best expects that the company will continue to be challenged by a low-interest-rate environment and potential equity market volatility.
Demotech downgraded the financial stability rating of Anchor Property & Casualty Insurance Co. to M, Moderate from A, Exceptional.
The revision is based on significant alterations to the company's business model related to its plan to cease writing new business in the very near future, according to the rating agency. The company will also sell off the unexpired period of current policies in force and will coordinate with the Florida Office of Insurance Regulation to orderly run off its remaining liabilities, according to Demotech.
Moody's affirmed the A1 insurance financial strength ratings of MS Amlin AG and Lloyd's of London Syndicate 2001, which are key operating subsidiaries of Mitsui Sumitomo Insurance Co. Ltd.'s international division. The outlooks are stable.
The ratings action follows the reorganization of Mitsui Sumitomo's international divisions whereby the company will directly own MS Amlin AG and the syndicate. MS Amlin PLC will also cease to be the regional holding for the companies. The move follows MS&AD Insurance Group Holdings Inc.'s acquisition of MS Amlin PLC in 2016.
The ratings reflect the companies' A3 stand-alone credit profiles and two notches of uplift due to parental support, according to Moody's. The rating agency believes that the companies will benefit from strong parental support because they are key components of Mitsui Sumitomo's strategy to grow and diversify outside its domestic Japanese market.
Middle East and Africa
Moody's withdrew the Baa2 insurance financial strength rating of Old Mutual Life Assurance Co. (South Africa) Ltd. The outlook was negative at the time of the withdrawal. The rating agency withdrew the rating for its own business reasons.
Fitch Ratings placed the A(idn) national insurer financial strength rating of PT FWD Life Indonesia on Rating Watch Evolving.
The ratings action follows the company's plan to acquire Commonwealth Bank of Australia's majority stake in PT Commonwealth Life.
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