AM Best Downgrades Issuer Credit Ratings of Lumico Life Insurance Group Members; Places Credit Ratings Under Review With Negative Implications
May 23 2024 - 4:24PM
Business Wire
AM Best has downgraded the Long-Term Issuer Credit
Ratings to “a” (Excellent) from “a+” (Excellent) and affirmed the
Financial Strength Rating of A (Excellent) of Lumico Life Insurance
Company (Jefferson City, MO) and Elips Life Insurance Company
(headquartered in Schaumburg, IL). These two companies are referred
to as Lumico Life Insurance Group. Concurrently, AM Best has placed
these Credit Ratings (ratings) under review with negative
implications.
The ratings reflect Lumico Life Insurance Group’s balance sheet
strength, which AM Best assesses as very strong, as well as its
marginal operating performance, limited business profile and
appropriate enterprise risk management (ERM).
On May 16, 2024, Swiss Re Ltd (Swiss Re) announced plans to
withdraw from the iptiQ business, of which Lumico Life Insurance
Group is a part of and will consider options for the different
entities in a manner and timeframe that maximizes value for the
group, subject to applicable regulatory approvals and
notifications.
The rating downgrades reflect a revision to Lumico Life
Insurance Group’s ERM assessment to appropriate from very strong.
AM Best expects that Lumico Life Insurance Group will become less
strategically important to the company’s strategy.
The ratings are expected to remain under review with negative
implications until the analytical team has assessed the impact of
this strategic change on the entity’s rating fundamentals. Lumico
Life Insurance Group currently receives lift from Swiss Re.
This press release relates to Credit Ratings that have been
published on AM 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 AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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Louis Silvers Senior Financial Analyst +1 908
882 2316 louis.silvers@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Michael Porcelli Senior Director +1 908 882
2250 michael.porcelli@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com