Ratings Recap: AXA Corporate Solutions (US), First Marine, Magna
A.M. Best Co. has affirmed the financial strength rating (FSR) of ‘B++’ (Good) and the issuer credit ratings (ICR) of “bbb” of AXA Corporate Solutions Reinsurance Company (AXA CS Re) and its subsidiary, AXA Corporate Solutions Life Reinsurance (AXA CS Life). Best also affirmed the FSR of ‘B++’ (Good) and assigned an ICR of “bbb” to AXA CS Re’ s other subsidiary, AXA Re Property and Casualty Insurance Company (AXA Re P&C). The outlook for all of the ratings is stable. All of the companies are domiciled in Wilmington, Del. “The ratings are based on AXA CS Re and its subsidiaries’ adequate risk-adjusted capitalization and operating performance since the AXA group’ s decision to place the companies into run off,” Best explained. “The ratings also recognize the companies’ conservative investment portfolios and favorable liquidity. Partially offsetting these positive rating factors are the variability in the companies’ operating performances and surplus levels and the uncertainties associated with the run off of the long-tail reinsurance business.”
A.M. Best Co. has placed the financial strength rating (FSR) of ‘B++’ (Good) and the issuer credit rating (ICR) of “bbb” of First Marine Insurance Company (FMIC) of Osage Beach, Missouri under review with positive implications. “These rating actions follow the recent announcement that FMIC has signed a definitive agreement to be acquired by American Modern Home Insurance Company (Amelia, Ohio), a member of American Modern Insurance Group (AMIG), subject to regulatory approval,” said Best. The positive implications reflect Best’ s view that “FMIC’ s FSR and ICR will likely be upgraded following the completion of the transaction to a level commensurate with the FSR of AMIG (currently ‘A+’ [Excellent]) due to the expectation that FMIC will be included as part of AMIG’ s intercompany pooling agreement.”
A.M. Best Co. has affirmed the financial strength rating (FSR) of ‘B+’ (Good) and the issuer credit rating (ICR) of “bbb-” of Magna Insurance Company with a stable outlook. Best noted that Magna is a wholly owned subsidiary of Hancock Holding Company (both of Gulfport, Miss). Subsequently, Best withdrew the FSR and ICR and assigned the company a category NR-4 (Company Request) in response to management’ s request that Magna be removed from A.M. Best’ s interactive rating process.