A.M. Best Affirms Credit Ratings of XL Group Ltd, Its Property/Casualty Subsidiaries and XLIT Ltd.
August 11 2017 - 1:41PM
Business Wire
A.M. Best has affirmed the Financial Strength Rating
(FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) of “a+” of the property/casualty subsidiaries of
XL Group Ltd (XL) (Bermuda) [NYSE: XL]. In addition, A.M.
Best has affirmed the Long-Term ICR of “bbb+” and the Long-Term
Issue Credit Ratings (Long-Term IR) of XLIT Ltd. (Cayman
Islands). A.M. Best also has affirmed the Long-Term ICR of “bbb+”
of XL. Additionally, A.M. Best has affirmed the Long-Term IR of the
preference share issues of Catlin Insurance Company Ltd.
(Bermuda). The outlooks of these Credit Ratings (ratings) remain
stable. (See below for a detailed listing of the companies and
ratings.)
A.M. Best also has affirmed the FSR of B++ (Good) and the
Long-Term ICR of “bbb+” of XL Life Ltd (Bermuda). The
outlook of these ratings is stable.
In addition, A.M. Best has affirmed the FSR of A (Excellent) and
the Long-Term ICR of “a+” of Lloyd’s Syndicate 2003 (United
Kingdom). The outlook of these ratings is stable. The syndicate’s
ratings reflect Lloyd’s financial strength, which underpins
the security of all Lloyd’s syndicates.
Furthermore, A.M. Best has affirmed the FSR of A- (Excellent)
and the Long-Term ICR of “a-” of T.H.E. Insurance Company
(New Orleans, LA). The outlook of these ratings is positive. The
outlooks recognize the positive rating attributes provided by XL as
the ultimate parent and owner, including strong financial and
operational resources.
The rating affirmations reflect XL Bermuda Ltd’s (XLB)
and the organization’s excellent risk-adjusted capital, strong
global profile in insurance and reinsurance, balanced cycle
management and favorable operating earnings trends. XL’s management
continues to enhance its underwriting capability within its global
insurance operations to help deliver solid and stable earnings. The
Catlin acquisition in 2015 provided XL with greater scale, a
broader product offering and as a result, greater influence in the
market. In the depths of a soft market, these attributes can be
highly beneficial. In addition, XL places emphasis on innovation to
offer new products to its clients globally in an effort to provide
solutions and remain relevant. Concurrently, the group continues to
enhance its enterprise risk management framework to mitigate
downside risk.
Partially offsetting these positive rating factors is XLB’s
exposure to large severity events and the current soft pricing
stage of the underwriting cycle. Additionally, investment returns
continue to be muted by low interest rates and financial market
variability.
Factors that could lead to an outlook revision or rating upgrade
include moderate debt and leverage measures at the ultimate parent
level and solid operating results coupled with strong risk-adjusted
capitalization.
Factors that could lead to an outlook revision or rating
downgrade include negative operating performance trends, not
limited to outsized catastrophe losses, accompanied by a
significant reduction in risk-adjusted capitalization.
The FSRs of A (Excellent) and the Long-Term ICRs of “a+” have
been affirmed with stable outlooks for the following subsidiaries
of XL Group Ltd:
- XL Bermuda Ltd
- Catlin Indemnity Company
- Catlin Insurance Company (UK)
Ltd.
- Catlin Insurance Company
Ltd.
- Catlin Insurance Company,
Inc.
- Catlin Re Switzerland Ltd
- Catlin Specialty Insurance
Company
- Greenwich Insurance Company
- Indian Harbor Insurance
Company
- XL Insurance America, Inc.
- XL Insurance Company SE
- XL Insurance Company of New York,
Inc.
- XL Insurance Switzerland
Ltd
- XL Re Europe SE
- XL Reinsurance America Inc.
- XL Seguros Mexico, S.A. de
C.V.
- XL Select Insurance Company
- XL Specialty Insurance
Company
The following Long-Term IRs have been affirmed with stable
outlooks:
XLIT Ltd.—--“bbb+” on $300 million 2.30% senior unsecured
notes, due 2018--“bbb+” on $400 million 5.75% senior unsecured
notes, due 2021--“bbb+” on $350 million 6.375% senior unsecured
notes, due 2024--“bbb+” on $325 million 6.25% senior unsecured
notes, due 2027--“bbb+” on $300 million 5.25% senior unsecured
notes, due 2043--“bbb” on $500 million 4.45% subordinated notes,
due 2025--“bbb” on $500 million 5.5% subordinated notes, due
2045--“bbb-” on $350 million Series D non-cumulative preferred
securities--“bbb-” on $1,000 million Series E non-cumulative
preferred securities, redeemable 2017
The following indicative Long-Term IRs have been affirmed on
shelf securities, with stable outlooks:
XLIT Ltd.—--“bbb+” on senior unsecured debt--“bbb” on
subordinated debt--“bbb-” on preferred stock
The following Long-Term IR has been affirmed with a stable
outlook for the following securities of Catlin Insurance Company
Ltd.—
--“bbb+” on $600 million preferred stock
This press release relates to Credit Ratings that have been
published on A.M. Best’s website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please see A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings. For information on the proper media use of Best’s
Credit Ratings and A.M. Best press releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and A.M.
Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating
Services, Inc. and/or its subsidiaries. ALL RIGHTS
RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20170811005508/en/
A.M. BestGreg Reisner, +1-908-439-2200, ext.
5224Directorgreg.reisner@ambest.comorAnthony
Silverman, +44 20 7626 6264Senior Financial
Analystanthony.silverman@ambest.comorChristopher
Sharkey, +1-908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
+1-908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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