ACE’s U.S. Subsidiaries Upgraded

A.M. Best Co. upgraded the financial strength ratings to “A+” (superior) from “A” (excellent) and assigned issuer credit ratings of “aa-” to ACE Westchester Specialty Group, headquartered in New York, and ACE American Pool of Pennsylvania.

The upgrades represent rating enhancements to the level of ACE Group based in the Cayman Islands from the stand-alone ratings of ACE American and ACE Westchester. The FSRs of “B-” (fair) and the ICRs of “bb-” of Brandywine Group of Pennsylvania remain under review with negative implications pending regulatory approval of the sale of three affiliated subsidiaries. Concurrently, Best upgraded the debt ratings to “a-” from “bbb+” of ACE Limited’s senior debt, returning to standard notching.

Best also affirmed the FSRs of “A+” (superior) and assigned ICRs of “aa-” to ACE Bermuda Insurance Ltd., ACE Tempest Life Reinsurance Limited and ACE Tempest Reinsurance Ltd.

Additionally, Best affirmed the FSRs of “A” (excellent) and assigned ICRs of “a” and “a+”, respectively, to ACE INA Insurance of Canada and ACE European Group Limited of the United Kingdom. All ratings (with the exception of Brandywine) have a stable outlook.

The rating affirmations of the Bermudian, Canadian and European subsidiaries and the rating lifts afforded to the U.S. subsidiaries to the level of ACE are based on ACE’s strong capitalization, excellent earnings generating capability, disciplined underwriting culture focused on profitability, global market profile and consistent management strategies.

Best views ACE Limited’s announcement of its decision to re-state its financials as providing considerable closure to the finite reinsurance cloud that has hung over the company in recent months. Best views the $1 million net effect of the GAAP re-statements as less than material; however, the need to re-state reveals a failure in measuring up to standards expected of a highly-rated company.

Topics USA