A.M. Best Co. affirmed the issuer credit rating (ICR) of “bbb+” of ACMAT Corp. (ACMAT). A.M. Best also affirmed the financial strength rating (FSR) of A (excellent) and ICR of “a+” of ACMAT’s wholly owned subsidiary, ACSTAR Insurance Co. The outlook for all ratings is stable.
The rating affirmations reflect ACSTAR’s exceptionally strong risk-adjusted capitalization, historically strong operating performance, geographic diversification, effective risk management and management’s experience in managing through market cycles, the rating agency says.
Amerisure Partners Insurance Co.
A.M. Best Co. assigned an FSR of A (excellent) and an ICR of “a” to Amerisure Partners Insurance Co., following receipt of an approved intercompany pooling agreement with Amerisure Mutual Insurance Co. The outlook assigned to the FSR is stable, while the outlook assigned to the ICR is positive.
The ratings and outlooks reflect those currently assigned to Amerisure Mutual and its remaining pooled affiliates, which were affirmed by A.M. Best on June 4, 2009.
These rating actions also consider Amerisure Partners’ strategic importance to the
Fairfax Financial Holdings Ltd.
Standard & Poor's Ratings Services assigned its 'BB' global-scale and 'P-3’ Canadian-scale ratings to Toronto-based Fairfax Financial Holdings Ltd.'s (BBB-/Stable/--) recent issuance of C$200 million in preferred shares, with an option on an additional C$50 million available to the underwriters. Fairfax issued the preferred shares from its current US$2 billion universal shelf filing. It will use the proceeds to augment its cash position, to increase short-term investments and marketable securities held at the holding-company level, retire outstanding debt and other corporate obligations from time to time, and for general corporate purposes. The ratings on Fairfax reflect its strong business and financial profile, S&P says.
A.M. Best Co. removed from under review with developing implications and affirmed the FSR of A- (excellent) and ICR of “a-” of Fidelity Life Assurance Co. Ltd. The outlook assigned to both ratings is stable.
The ratings reflect Fidelity Life’s consistent new business growth, continued operating profitability and corresponding surplus accumulation. Fidelity Life continued to demonstrate strong new business growth for the 12 months to year-end June 2009, the rating agency says.
Moody's Investors Service affirmed the Baa3 senior debt ratings of Fidelity National Financial Inc., and the A3 insurance FSR of the group's lead title insurance operating subsidiaries, and changed the ratings' outlook to stable from negative. The stable outlook reflects improved title insurance subsidiary capitalization and earnings, as well as reduced integration risks associated with the acquisition of LandAmerica's title insurance subsidiaries.
The change in outlook reflects the rating agency’s opinion that a number of rating concerns, particularly around subsidiary capitalization and integration risk, have been significantly alleviated. Capital adequacy at the company's title insurance subsidiaries had been strained following the acquisition of LandAmerica's subsidiaries. However, strong earnings during the latter part of 2009 combined with capital infusions from the parent have improved subsidiary capital levels, Moody’s says.
A.M. Best Co. affirmed the FSR of A- (excellent) and the ICR of “a-” of Guild Insurance Ltd. (GIL) The outlook for both ratings is stable.
The ratings reflect GIL’s ongoing operating profitability and distribution advantage in the health care and childcare sectors, the rating agency says.
Moody's Investors Service confirmed Humana Inc.'s ratings (senior debt at Baa3) based on the retention of the TRICARE contract for the South Region until at least March 31, 2011, after Humana's appeal was sustained. The outlook on Humana was changed to stable.
This rating action concludes the review for possible downgrade that was initiated on July 15, 2009. Moody's says the rating confirmation reflects the retention of the TRICARE contract, which generates estimated annual revenue of $3.5 billion and annual pre-tax income of $100 million, as well as anticipated improvement in Humana's operating performance in 2010.
A.M. Best Co. affirmed the FSR of A+ (superior) and ICR of “aa-” of Mutual of Omaha Insurance Co. and its subsidiaries: United of Omaha Life Insurance Co. (United of Omaha), Companion Life Insurance Co. and United World Life Insurance Co. Additionally, A.M. Best affirmed the debt rating of “a” on $300 million 6.8% surplus notes due 2036 of Mutual. The outlook for all ratings is stable.
The rating affirmations primarily reflect Mutual of Omaha’s sufficient absolute and risk-adjusted capitalization despite realized capital losses in its investment portfolio, solid top-line revenue growth within many of its core product lines and favorable GAAP operating results. The company also benefits from strong brand name recognition, a multi-platform distribution system and a well-diversified product portfolio, which has been enhanced by a new banking initiative, the rating agency says.
A.M. Best Co. upgraded the FSR to A (excellent) from A- (excellent) and the ICR to “a+” from “a-” of PARIS RE and its affiliates. These ratings have been removed from under review with positive implications and assigned a positive outlook.
Additionally, A.M. Best affirmed the ICR of “bbb-” of the holding company, PARIS RE Holdings Limited (PRH) with a positive outlook. Subsequently, A.M. Best has withdrawn this rating and assigned an “nr.”
Fitch Ratings has affirmed ProAssurance Corp.'s (PRA) issuer default rating (IDR) at BBB+. Fitch also affirmed the 'A' insurer financial strength (IFS) ratings of PRA's primary insurance operating companies. In addition, Fitch has assigned an IFS rating of 'A' to the recently acquired Podiatry Insurance Co. of America subsidiaries. The outlook on all ratings is stable.
Fitch's rating actions consider the solid capital position of PRA's operating subsidiaries, as well as their consistent profitability, financial and operating flexibility and highly experienced management team. PRA has an established reputation for providing quality service and expertise in risk management in the medical professional liability line as well as a strong track record of aggressively defending non-meritorious claims, which enhances customer loyalty and reduces fraud.
S&P withdrew its 'A' insurer FSR on U.K.-based life reinsurer SCOR Global Life Reinsurance U.K. Ltd. (SCOR Life U.K.), part of the SCOR group (SCOR; core operating entities are rated A/stable). The rating was withdrawn following the transfer of all assets and liabilities of the company to a U.K. branch of SCOR Global Life SE (A/Stable), with effect from Nov. 1, 2008. SCOR Life U.K. was subsequently dissolved. SCOR Global Life SE is the main operating company within SCOR's life business. It previously assumed the assets and liabilities of SCOR Global Life Rueckversicherung AG, which in turn was the guarantor of SCOR Life U.K.'s reinsurance and insurance liabilities. This guarantee is superseded by one provided by SCOR SE (A/Stable/A-1) to SCOR Global Life SE.
A.M. Best Co. commented that the FSR of A (excellent) and ICR of “a+” of Symetra Life Insurance Co. (Symetra Life) and its subsidiary, First Symetra National Life Insurance Co. of New York, as well as the ICR of “bbb+” and debt ratings of the holding company, Symetra Financial Corp. (Symetra Financial) are unchanged following Symetra Financial’s initial public offering (IPO) of $12 per share.
Symetra Financial raised more than $248 million from its IPO of 20,699,510 primary shares and certain existing shareholders simultaneously sold 9,700,490 secondary shares totaling $116 million.
Symetra Financial intends to use the net primary shares proceeds from its IPO for general corporate purposes, which may include contributions of capital to its insurance subsidiaries and pursuit of its growth strategies. The company will not receive any proceeds from the sale of secondary shares by certain shareholders. White Mountains Insurance Group Ltd., and Berkshire Hathaway Inc., will continue to be shareholders in Symetra Financial following the IPO.
Taiwan Life Insurance Co. Ltd.
S&P revised its rating outlook on Taiwan Life Insurance Co. Ltd. to stable from negative. At the same time, S&P affirmed its 'BBB' local currency FSR and 'BBB' local currency counterparty credit rating on Taiwan Life. The rating agency believes Taiwan Life's capitalization has stabilized, due mostly to a stabilized local capital market.
In December 2008, Standard & Poor's revised the rating outlook on Taiwan Life to negative from stable, reflecting the company's weakening capitalization and financial flexibility. The recent stabilization of Taiwan's capital market, together with Taiwan Life's stable mortality and expense surplus performances have helped to reduced the company's capitalization risks, S&P says.
S&P affirmed its 'A+' long-term counterparty credit and insurer FSRs on Austria-based composite insurer Vienna Insurance Group Wiener Staedtische Versicherung AG (VIG AG). The outlook is stable. At the same time the rating agency affirmed the 'A-' junior subordinated long-term debt rating on the $500 million undated, subordinated notes issued by the company in 2008 and 2009, as well as the 'BBB+' junior subordinated debt ratings on the total $300 million subordinated fixed-to-floating-rate notes and on the perpetual subordinated bonds.
The affirmation follows the announcement by group management that it intends to separate the holding function and demerge its Austrian insurance business into a newly founded operating insurance subsidiary. The stable outlook reflects S&P’s view that management will continue to successfully develop the group's CEE businesses, despite a weakened economic outlook.
