Link TextGreat American Financial Resources financial strength rating got another thumbs-up from A.M. Best Co., but saw its key life and health units outlook rating move from stable to negative. A.M. Best cited the companys consistently profitable operating performance, favorable liquidity position and solid risk-adjusted capitalization, and the breadth and depth of its distribution channels, for its reaffirmation.
The economy took its toll on the insurer, however, as the ratings company cite the downturn, along with Great Americans exposure to financial-sector corporate bonds and mortgage-backed securities as the rationale behind the drop in its outlook rating.
Moody's Investors Service, meanwhile, followed a Fitch Ratings downgrade, and cut credit ratings on Prudential PLC's main UK insurance business, Prudential Assurance Co., because of lower solvency surplus levels in 2008 as well as the global economic downturn in the fourth quarter, reports the Dow Jones Newswires.
Although Moody's affirmed its ratings on Prudential's U.S. business, (Jackson National Life Insurance Co.), and other UK operating entities, it also upgraded Prudential Retirement Income Ltd.
Today, A.M. Best also affirmed the financial strength and issuer credit ratings of American Financial Group Inc. and its P&C subsidiaries, Mid-Continent Group and Republic Indemnity Insurance Pool and their P&C members. A.M.Bests outlook for all issued ratings is stable.
Following its $397 million debt issuance, MetLife Inc., heard good news from A.M. Best, which commented on all financial strength and issuer credit ratings for the company. MetLifes rating remains unchanged, says A.M. Best, and the insurers rating outlook is stable.
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