Bell United Insurance Co.
A.M. Best Co. revised the outlook to stable from negative and affirmed the financial strength rating (FSR) of A- (excellent) and issuer credit rating (ICR) of “a-” of Bell United Insurance Co.
The ratings reflect Bell United’s balance sheet strength, strong liquidity position and long-standing local commercial automobile market presence in Nevada, A.M. Best says. These positive rating factors are derived from the company’s low underwriting leverage as well as management’s focus on providing commercial automobile liability coverage for affiliated companies engaged in Nevada’s public transportation business.
Brit Insurance Holdings N.V.
Fitch Ratings has today assigned Brit Insurance Holdings N.V. (BIHNV), the newly created Netherlands domiciled ultimate holding company of the Brit Insurance Group (Brit Insurance), an issuer default rating (IDR) of 'BBB+' with stable outlook. Fitch has simultaneously affirmed and withdrawn Brit Insurance Holdings Plc's (BIH) IDR of BBB+ with stable outlook. The BBB- rating of the GBP135m subordinated notes, which are now an obligation of BIHNV, but remain guaranteed by BIH, is unaffected.
The subordinated debt rating does not factor in any impact arising from the announced change in hybrid securities ratings criteria titled "Rating Hybrid Securities" published on Dec. 29, 2009, and available on Fitch’s
The rating actions are in response to Brit Insurance's corporate reorganization that is intended to aid the insurer's international development, help maintain its competitive position and align its corporate tax rate with many of its global peers.
Canal Group and its Members
A.M. Best Co. downgraded the FSR to A (excellent) from A+ (superior) and ICR to “a+” from “aa-” of Canal Group (Canal) and its members,
The ratings downgrade reflects the negative impact that continued adverse loss reserve development and premium declines (driven by the negative impact of macroeconomic conditions in its niche markets as well as through targeted competition) have had on underwriting and operating results through fourth quarter 2009, which fell well short of A.M. Best’s expectations. These results continued several years of underperformance that is not consistent with a “superior” rating.
Moody's Investors Service assigned a Baa3 (negative outlook) debt rating to the approximately $250 million of fixed-rate senior unsecured notes, maturing in January 2020, to be issued by Delphi Financial Group Inc. The majority of the proceeds of the notes are expected to be used to repay debt outstanding under the company's revolving credit facility, which had approximately $222 million outstanding as of the end of the Q3 2009. The notes are a drawdown from a shelf registration filed in December 2008.
Moody's also rated Delphi's universal shelf registration (senior debt at (P)Baa3, negative outlook) referred to above, which replaces a shelf filed in May 2007.
S&P affirmed its 'A' long-term counterparty credit and IFS ratings on Groupama Vie, the main life insurance entity of Groupama group (core operating entities rated counterparty credit and IFS ratings A/negative/--). At the same time, S&P withdrew the ratings. At the time of withdrawal, the outlook was negative. S&P withdrew the ratings because of Groupama Vie's merger into Groupama GAN Vie.
The rating action follows the recent completion of the transfer of Groupama Vie's portfolios, including all related assets and liabilities, to Groupama GAN Vie, previously called GAN Assurance Vie (not rated), and the subsequent shutdown of Groupama Vie.
A.M. Best Co. affirmed the FSR of A+ (superior) and ICR of “aa” of The Manufacturers Life Insurance Co. (MLI), John Hancock Life Insurance Co. (USA) (JHUSA) and JHUSA’s subsidiaries, John Hancock Life Insurance Co. of New York and John Hancock Life & Health Insurance Co.
Additionally, A.M. Best has affirmed the ICR of “a” and all debt ratings of Manulife Financial Corp. (Manulife) and assigned an ICR of “a” to Manufacturers Investment Corp. (MIC). The outlook for all ratings is stable.
Concurrently, A.M. Best has withdrawn the FSRs of A+ (superior) and ICRs of “aa” of John Hancock Life Insurance Co. and John Hancock Variable Life Insurance Co. and assigned a category NR-5 (Not Formally Followed) to the FSRs and an “nr” to the ICRs.
Effective Dec. 31, 2009, the two life insurance entities were merged into JHUSA as part of a legal entity consolidation plan. In addition, A.M. Best has withdrawn the ICR of “a” of John Hancock Financial Services Inc. (JHFS), and assigned an “nr” to the ICR following its merger into MIC. All debt associated with JHFS has been assumed by MIC, and MFC will continue to unconditionally guarantee the notes previously held by JHFS.
National Grid Insurance Co. (Isle of Man) Ltd.
A.M. Best Co. affirmed the FSR of A (excellent) and the ICR of “a” of National Grid Insurance Co. (Isle of Man) Ltd. (NGICL), a captive of National Grid plc. The outlook on both ratings remains stable.
The ratings reflect NGICL’s strong risk-adjusted capitalization and robust business profile, offset by its volatile underwriting performance, the rating agency says.
A.M. Best considers that there is a high level of volatility within NGICL’s portfolio due to the nature of the risks it insures. Although NGICL’s risks are located within zones generally devoid of natural catastrophes, the risk of breakdown or failure of equipment remains ever present, with the potential to incur significant large loss events. However, these risks are largely offset by NGICL’s comprehensive reinsurance program, with the majority of reinsurers highly rated by A.M. Best.
In A.M. Best’s opinion, NGICL’s relatively high level of retention per occurrence allows for it to fulfill its primary function of absorbing the attritional losses of National Grid plc on its main lines of business (property damage/business interruption and third-party liability programs).
A.M. Best Co. affirmed the FSR of A- (excellent) and ICR of “a-” of SeaBright Insurance Co. (SBIC). Concurrently, A.M. Best affirmed the ICR of “bbb-” of SBIC’s holding company parent, SeaBright Insurance Holdings Inc. (SIH). The outlook for all ratings is stable.
These rating actions reflect SBIC’s solid capitalization, strong underwriting and operating results and experienced management team within its niche market for multi-jurisdictional workers’ compensation insurance, A.M. Best says.
