A.M. Best Co. affirmed the financial strength rating (FSR) of A- (excellent) and issuer credit rating (ICR) of “a-” of Accident & General Insurance Co. Ltd. (AGI) The outlook for both ratings is stable.
Concurrently, A.M. Best has withdrawn the ratings and assigned an NR-4 to the FSR and an “nr” to the ICR. These rating actions reflect AGI’s management’s decision to withdraw from A.M. Best’s interactive rating process.
The ratings reflect AGI’s excellent capitalization levels, solid operating performance, experienced management team, niche market profile and extensive risk management and safety programs. Partially offsetting these positive rating factors are the concentration of risk associated with the company’s specific focus on recreational divers and its relatively high retention levels relative to surplus.
American Access Casualty Co.
A.M. Best Co. upgraded the FSR to B+ (Good) from B (Fair) and ICR to “bbb-” from “bb+” of American Access Casualty Co. The outlook for both ratings is stable.
The ratings reflect American Access’ favorable risk-adjusted capitalization, consistent operating earnings and extensive local market knowledge in its core states. The company’s solid capital position is attributed to favorable loss reserve development trends and a conservative investment portfolio, according to the rating agency. American Access has reported several years of favorable operating results that produced a five-year average operating return, which has outperformed the industry composite. In addition, a steady stream of investment and fee income supplemented the company’s underwriting gains over the past five years.
A.M. Best Co. assigned an FSR of A+ (superior) and ICR of “aa-” to Crestbrook Insurance Co. The assigned outlook for both ratings is negative.
Crestbrook is a wholly owned, reinsured subsidiary of Nationwide Mutual Insurance Co. (Nationwide Mutual). Both Crestbrook and Nationwide Mutual are members of the Nationwide Group (Nationwide).
Crestbrook’s ratings reflect its projected levels of risk-adjusted capitalization and operating performance in addition to its reinsured affiliation with Nationwide Mutual.
The outlook reflects the potential impact on Crestbrook’s ratings from the challenges faced by Nationwide’s management to rebuild surplus in the wake of historical storm losses and the decline in risk-adjusted capitalization associated with the early 2009 privatization of Nationwide Financial Services Inc.
A.M. Best Co. assigned indicative debt ratings of “bb” to senior unsecured debt, “bb-” to subordinated debt and “b+” to preferred stock of FBL Financial Group Inc. (FBL), which may be issued under its recently filed shelf registration statement. Additionally, A.M. Best assigned an indicative rating of “b+” to the shelf trust preferred securities of FBL Financial Group Capital Trust II. The outlook assigned to all ratings is negative. FBL’s financial strength, issuer credit and existing debt ratings are unchanged.
The proceeds from the offerings may be added to FBL’s general funds and used for general corporate purposes, unless specified in subsequent debt issuances. A.M. Best will monitor the company’s ability to generate earnings to adequately cover any additional interest expense incurred from debt instruments issued under the shelf.
A.M. Best Co. revised the outlook to stable from negative and affirmed the FSR of A- (excellent) and ICR of “a-” of The First Rehabilitation Life Insurance Co. of America.
The revised outlook reflects First Rehabilitation’s improving pre-operating earnings and capitalization, completion of the premium crediting/refund process agreed upon with the state of New York a couple of years ago on its core statutory disability income business and the company’s ongoing diversification efforts, says A.M. Best.
First Rehabilitation has expanded its diversification of premiums written with the growth of its group medical reimbursement, group excess major medical, group dental and group vision products. The growth of these products, combined with the expansion of First Rehabilitation’s disability business, has generated increased pre-tax operating earnings. As a result of this growth, First Rehabilitation’s surplus also has grown.
Fitch Ratings affirmed the insurer financial strength (IFS) ratings of Genworth Financial Inc.'s primary U.S. life insurance companies (GNW-Life) at 'A-'. The rating outlook remains negative.
The affirmation follows an updated review of GNW's investment exposures, capital position, liquidity and interim financial performance, and reflects Fitch's view that these key ratings factors remain consistent with expectations for the current rating. Fitch notes that the company has taken a number of positive steps this year to improve its financial flexibility and strengthen its capital position, including the successful partial IPO of its Canadian mortgage insurance business for $705 million of proceeds, and a recently completed equity raise of $621 million.
A.M. Best Co. has withdrawn the FSR of B++ (Good) and ICR of “bbb” of Humana Benefit Plan of Illinois Inc. (HMO), a former line of business statutory filing of Humana Benefit Plan of Illinois Inc., a subsidiary of Humana Inc.
Concurrently, A.M. Best assigned an NR-5 (not formally followed) to the FSR and an “nr” to the ICR of Humana Benefit Plan of Illinois Inc. (HMO).
Effective for 2009, Humana Benefit Plan of Illinois Inc. is now filing its quarterly and annual statutory statements on an NAIC health blank and is no longer required to file a separate statement for its HMO line of business.
The FSR of B++ (Good) and ICR of “bbb” of Humana Benefit Plan of Illinois, Inc. are unchanged by this transaction.
Fitch Ratings has affirmed the long-term Issuer Default Rating (IDR) of Infinity Property & Casualty Corp. at BBB+ and $200 million senior notes due 2014 at 'BBB'. Fitch also affirmed the IFS ratings of Infinity's operating subsidiaries at 'A'. The rating outlook is stable.
The ratings are based on solid underwriting results, quality balance sheet, strong capitalization and adequate loss reserving levels, Fitch says. Offsetting these positives are Infinity's business concentration in the California auto market, which represents approximately 55% of net written premiums as of June 30, 2009, increased competitive landscape, and exposure to political and operating uncertainty.
A.M. Best Co. assigned a debt rating of “bbb+” to the new issuance of $350 million 7.125% 10-year senior unsecured notes, due 2019 of Markel Corp. The assigned outlook is stable. Proceeds from the current offering will be used for general corporate purposes, including acquisitions.
Rembrandt Insurance Co. Ltd.
A.M. Best Co. affirmed the FSR of A (Excellent) and the ICR of “a” of Rembrandt Insurance Co. Ltd., a captive operation of Vitol Holding B.V., a global oil trading company. The outlook for both ratings is stable.
The ratings reflect Rembrandt’s very strong risk-adjusted capitalization, robust financial performance and stable business profile, the rating agency says. An offsetting factor remains high concentration in the marine cargo line of business.
A.M. Best Co. downgraded the ICR to “a” from “a+” and affirmed the FSR of A (excellent) of Seguros Inbursa S. A. The outlook for both ratings is stable.
The ratings reflect Seguros Inbursa’s solid risk-adjusted capitalization, historical profitability and diversified business profile. The ratings also reflect the company’s affiliation with Grupo Financiero Inbursa, one of the largest financial groups in Mexico.
A.M. Best Co. assigned a debt rating of “bbb-” to the $350 million 7.125% senior unsecured notes, maturing 2016 issued by Unum Group. The rating outlook is stable. Unum and its subsidiaries’ existing financial strength, issuer credit and debt ratings are unchanged.
The proceeds from the notes are to be used for general corporate purposes. A.M. Best notes that earlier in 2009, the company paid off $132.2 million of maturing debt using cash at the holding company. At June 30, 2009, Unum’s debt-to-capital ratio was reported at 18.5%, well below the company’s target of 25%.
Fitch Ratings assigned a 'BBB-' rating to Willis North America Inc.'s (WNA) new issue of $300 million 7.00% senior unsecured notes due 2019. The rating outlook is negative. The new issue will be fully and unconditionally guaranteed by all the direct and indirect parent entities of WNA, including Willis Group Holdings Ltd. (Willis).
The company intends to use the net proceeds of the offering to purchase any and all of WNA's outstanding 5.125% senior notes due 2010 that are tendered and accepted in the tender offer announced separately on Sept. 22, 2009. Remaining proceeds will be used to pay down various other outstanding debt. The public offering is being made pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission and is expected to close on Sept. 29, 2009.
