Standard & Poor’s Ratings Services placed its “A+” counterparty credit and financial strength ratings on Employers Reinsurance Corp., “A-” counterparty credit rating on GE Insurance Solutions Corp. and various ratings on several affiliates on CreditWatch with negative implications.
S&P said it has ongoing concerns about the group’s continuing reserve strengthening for past accident years. It expects to resolve the CreditWatch status of the ratings in the first quarter of 2005 following a review of year-end 2004 statutory financials. Although a definitive conclusion cannot be established prior to that time, S&P believes that the ratings will not change by more than two notches.
The current ratings on ERC and GE Insurance Solutions reflect the company’s strong global reinsurance franchise, moderately improving operating performance, and conservative investment portfolio. The ratings are also said to reflect GE Insurance Solutions’s position as a nonstrategic subsidiary of General Electric Co. Partially offsetting these factors is the company’s lower business diversification.
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