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
Fitch Ratings has affirmed Massachusetts Mutual Life Insurance Co.'s insurer financial strength rating at AA+, issuer default rating at AA and short-term issuer default rating at F1+.
The ratings outlook is stable.
The rating agency also affirmed insurer financial strength ratings at AA+ of units C.M. Life Insurance Co. and MML Bay State Life Insurance Co.
Fitch said its ratings reflect MassMutual's strong market position in several major and broadly diversified business lines, its strong capital levels, and its good run-rate profitability and investment performance. The ratings also consider the ongoing impact of the low-interest-rate environment and potential financial market volatility.
The ratings on C.M. Life Insurance and MML Bay State Life Insurance are based on Fitch's view that these entities are core operating companies within the MassMutual organization.
Fitch affirmed the long-term issuer default rating at A- of Pacific LifeCorp.
The ratings outlook is stable.
Fitch also affirmed Pacific Life Insurance Co.'s long-term issuer default rating at A, and Pacific Life & Annuity Co.'s and Pacific Life Re Ltd.'s issuer default ratings at A+.
Pacific LifeCorp's ratings are based on the company's diverse business profile, very strong statutory capitalization, good liquidity, and solid investment performance, according to the rating agency.
A.M. Best has upgraded the financial strength rating to A from B++ and the long-term issuer credit rating to "a" from "bbb" of CM Regent Insurance Co.
The outlook of the ratings is stable.
A.M. Best said the upgrades reflect the approval of the 100% reinsurance agreement between CM Regent and its parent, Church Mutual Insurance Co., by the Pennsylvania and Wisconsin regulatory authorities.
A.M. Best downgraded the financial strength rating to B- from B and the long-term issuer credit rating to "bb-" from "bb" of Golden Insurance Co. A Risk Retention Group.
Concurrently, A.M. Best has placed the credit ratings under review with negative implications.
The rating downgrades are due to the receipt of third-quarter financial statements, which account for revised premium earning patterns prescribed by the Nevada Division of Insurance, according to the rating agency. As a result of this change, statutory surplus has decreased materially, and there has been a material reduction in the company's overall risk-adjusted capitalization, as measured by A.M. Best's Capital Adequacy Ratio. Additionally, Golden Insurance has experienced a rise in underwriting and loss adjustment expenses that have deteriorated underwriting results somewhat.
A.M. Best has placed under review with negative implications the financial strength rating of A and the long-term issuer credit ratings of "a+" of Allied World Assurance Co. Ltd. and its operating subsidiaries.
The operating companies are Vantapro Specialty Insurance Co., Allied World Surplus Lines Insurance Co., Allied World Assurance Co. (U.S.) Inc., Allied World National Assurance Co., Allied World Specialty Insurance Co., Allied World Insurance Co. and Allied World Assurance (Europe) Designated Activity Co.
Additionally, A.M. Best has placed under review with negative implications the long-term issuer credit ratings of "bbb+" of Allied World Assurance Co. Holdings AG and Allied World Assurance Co. Holdings Ltd. Further, A.M. Best has placed under review with negative implications the long-term issue credit rating of "bbb+" of Allied World Assurance Co. Holdings Ltd.
The under review status follows the announcement that Fairfax Financial Holdings Ltd. and Allied World have entered into a merger agreement, under which Fairfax will acquire all outstanding registered ordinary shares of Allied World.
The under review with negative implications status reflects the execution risks associated with the transaction and the variation between Fairfax's and Allied World's credit ratings, according to A.M. Best.
S&P Global Ratings affirmed its BBB counterparty credit rating on Delphi Financial Group Inc. and its A counterparty credit ratings on First Reliance Standard Life Insurance Co., Safety National Casualty Corp. and Reliance Standard Life Insurance Co.
The outlook remains stable.
S&P's ratings affirmation reflects the rating agency's view of Delphi's strategic importance to Tokio Marine Group, and receives one notch of support as a result. The stable outlook on Delphi and its operating subsidiaries reflects S&P's expectation that the subgroup will maintain its strong market positions in its chosen niche businesses, and will continue to generate strong operating results, sustain its strategically important status to Tokio Marine Group and maintain moderately strong capital adequacy.
S&P placed all of its ratings on Allied World Assurance Co. Holdings and its operating companies on CreditWatch with negative implications.
The operating companies affected are Allied World Assurance Co. (Europe) Ltd., Allied World Assurance Co. Ltd., Allied World Assurance Co. U.S. Inc., Allied World Assurance Co. AG, Allied World Insurance Co. and Allied World National Assurance Co.
The CreditWatch placement follows the announcement that Fairfax Financial Holdings and Allied World Assurance Co. Holdings have entered into a merger agreement, under which Fairfax will acquire Allied World.
S&P said the transaction would bring a strong-performing (re)insurance group under the Fairfax umbrella, but as with other Fairfax (re)insurance units, Allied World would continue to operate independently with no expected revenue or expense synergies. Additionally, S&P noted that Allied World's executives have not entered into any long-term contracts to remain employed with the company. The rating agency said the departure of key executives is a negative rating factor.
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