ACE Insurance Ltd. Ratings Affirmed; Off CreditWatch
Standard & Poor’s has affirmed its ‘A’ insurer financial strength and counterparty credit ratings on Australia-based ACE Insurance Ltd. and removed them from CreditWatch with negative implications, as a result of similar action taken on parent ACE Ltd. The outlook is negative.
The ratings on ACE Insurance Ltd. benefit from its strategic importance to the Bermuda-based ACE group. “Removal of the CreditWatch with negative implications for ACE Insurance reflects the action taken on its parent,” said Craig Bennett, credit analyst, Financial Services Ratings.
The negative outlook on the ACE group reflects Standard & Poor’s view that near-term capital management pressures, sizeable goodwill, and material exposure to credit risk may burden earnings and financial strength, and may affect the rating over the intermediate to longer term.
ACE group’s removal from CreditWatch Negative follows the announcement by ACE Ltd. of plans to address capital adequacy concerns through an issue of U.S. $500 million perpetual preferred stock in the near term. This followed ACE Ltd.’s previous announcement that 2002 earnings would be reduced by U. S. $354 million in reference to its asbestos reserve strengthening, which had prompted the Standard & Poor’s CreditWatch action.
Standard & Poor’s continues to have concerns about the effect of the increased reserving on capital adequacy, coupled with the group’s increased leverage, growing credit risk, and its existing capital and risk management strategies.
- Sanofi to Pay $100 Million to Settle Zantac Cancer Lawsuits
- 4,800 Claims Handled by Unlicensed Adjusters in Florida After Irma, Lawsuit Says
- California Chiropractor Sentenced to 54 Years for $150M Workers’ Comp Scheme
- Jury Awards $80M to 3 Former Zurich NA Employees for Wrongful Termination
- Mother of 8-Year-Old ‘Violently Sucked’ into Houston Hotel Pool Files Wrongful Death Suit
- CoreLogic Report Probes Evolving Severe Convective Storm Risk Landscape
- Report: Vehicle Complexity, Labor ‘Reshaping’ Auto Insurance and Collision Repair
- Millions of Recalled Hyundai and Kia Vehicles, With Dangerous Defect, Remain on Road