Standard & Poor’s announced that it has affirmed its single ‘A-‘minus long-term counterparty credit and insurer financial strength ratings on the operating subsidiaries of the Alea Group, and has removed them from CreditWatch, following the announcement that the company’s main backer, Kohlberg, Kravis Roberts & Co. unit KKR 1996 Fund, has committed to provide a minimum of $100 million in new capital before the end of the year.
KKR engineered the management buyout of RhineRe in 1997 from the Baloise Insurance Company. The name was changed to Alea Group, and the operating subsidiaries were re-branded in August 2000. The additional capital reflects the commitment KKR has to Alea and its management team said the company’s announcement.
“The ratings on the Alea group were placed on CreditWatch with negative implications following the Sept.11, 2001 attacks in the U.S. After a recent ‘from-ground-up’ review of its exposure resulting from the attacks, Alea Group has established a conservative level of provisions of $90 million gross, $25 million net of reinsurance,” said S&P’s announcement.
It pointed out that the group would require additional capital to “remain within the risk-based capital expectations established last year,” and “to achieve its medium and longer term growth expectations.” The rating agency acknowledged KKR’s additional investment and noted that it’s “also committed to exploring other ways to strengthen the company’s capital base.
Was this article valuable?
Here are more articles you may enjoy.
Woman Used Photos from Another Person in State Farm Claim, NCDOI Says 
Wall Street Pushes Back After Activists Escalate Protests 
Hacker Says AT&T Paid About $400,000 to Erase Sensitive Data 
Allstate Seeking 34% Rate Hike on California Homeowners Insurance 
