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Insurance ratings actions: A.M. Best places Spinnaker Insurance under review

S&P Global Market Intelligence compiles ratings actions in the insurance space daily through 5 p.m. ET. Actions after 5 p.m. ET will be included in the following day's roundup.

U.S. and Canada

A.M. Best affirmed the A+ financial strength ratings and the "aa-" long-term issuer credit ratings of Sentry Insurance A Mutual Co. and its wholly owned subsidiaries.

The entities are Dairyland Insurance Co., Sentry Lloyds of Texas, Sentry Select Insurance Co., Middlesex Insurance Co., Florists' Mutual Insurance Co., Dairyland County Mutual Insurance Co. of Texas, Sentry Casualty Co., Florists' Insurance Co., Patriot General Insurance Co., Viking Insurance Co. of Wisconsin, Peak Property & Casualty Insurance Corp., and Parker Centennial Assurance Co. The outlook of the credit ratings remains stable.

The property and casualty subsidiaries' ratings reflect their consolidated balance sheet strength, which A.M. Best categorizes as strongest, as well as their adequate operating performance, favorable business profile and appropriate enterprise risk management. The affirmation considers the group's strong risk-adjusted capital position and a fairly conservative investment portfolio, along with its continued consistent operating results.

Concurrently, the agency assigned the A+ financial strength rating and the "aa-" long-term issuer credit rating to Dairyland National Insurance Co. The outlook assigned to the ratings is stable.

The ratings assigned to Dairyland National Insurance reflect its strategic position within the organization and the execution of an inter-company quota share agreement.

A.M. Best also affirmed the A+ financial strength ratings and the "aa-" long-term issuer credit ratings of Sentry Life Insurance Co. and Sentry Life Insurance Co. of New York. The outlook of the credit ratings remains stable.

The ratings reflect the companies' balance sheet strength, which A.M. Best categorizes as strongest, their adequate operating performance, neutral business profile and appropriate enterprise risk management.

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A.M. Best affirmed the "bbb-" long-term issuer credit ratings of Third Point Re (USA) Holdings Inc. and its ultimate holding company, Third Point Reinsurance Ltd.

The agency also affirmed the A- financial strength ratings and the "a-" long-term issuer credit ratings of Third Point Reinsurance Co. Ltd. and Third Point Reinsurance (USA) Ltd.

The ratings reflect Third Point Reinsurance Ltd.'s balance sheet strength, which A.M. Best categorizes as very strong, its marginal operating performance, neutral business profile and appropriate enterprise risk management.

The outlook of the credit ratings remains negative, reflecting the agency's concern over the company's business profile given its historically lackluster return measures, with an average return on equity of 1.4% over the five years through 2019-end.

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A.M. Best placed under review with developing implications the A- financial strength rating and the "a-" long-term issuer credit rating of Spinnaker Insurance Co.

The action follows the announcement that Hippo Insurance Services agreed to acquire Spinnaker, with the transaction expected to close in the third quarter, subject to regulatory approvals.

The under review with developing implications status reflects the need for A.M. Best to fully assess the financial and operational impacts of the acquisition, including potential benefits that Spinnaker may receive as part of a larger organization.

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A.M. Best affirmed the A financial strength ratings and the "a+" long-term issuer credit ratings of Health Care Service Corp. a Mutual Legal Reserve Co. and its subsidiaries.

The entities are Dearborn Life Insurance Co., Dearborn National Life Insurance Co. of New York, GHS Health Maintenance Organization Inc., GHS Insurance Co. and HCSC Insurance Services Co.

The outlook of the credit ratings is positive, reflecting Health Care Service's favorable operating performance trends and ability to execute on the strategic plan under its new management team.

The ratings consider Health Care Service's balance sheet strength, which A.M. Best categorizes as strongest, its adequate operating performance, neutral business profile and appropriate enterprise risk management.

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A.M. Best affirmed the A- financial strength ratings and the "a-" long-term issuer credit ratings of Through Transport Mutual Insurance Association Ltd. and its TT Club Mutual Insurance Ltd. subsidiary. The outlook of the credit ratings remains stable.

The ratings of Through Transport reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

TT Club's ratings reflect the fundamental role it plays in Through Transport's strategy, as well as the comprehensive reinsurance protection that it receives from the parent.

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A.M. Best affirmed the B financial strength rating and the "bb+" long-term issuer credit rating of ELCO Mutual Life & Annuity. The outlook of the credit ratings remains positive.

The ratings reflect ELCO's balance sheet strength, which A.M. Best categorizes as weak, as well as its strong operating performance, neutral business profile and marginal enterprise risk management.

The positive outlook considers continued strengthening in the company's balance sheet, including improving risk-adjusted capitalization, profit-based growth in absolute capital, and improvements in the risk profile of its investment portfolio.

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Fitch Ratings assigned the F2 short-term issuer default rating to Humana Inc.

The assigned rating indicates the structural and regulatory subordination of insurance holding companies relative to insurance operating company obligations. Fitch continues to view Humana's capitalization and leverage as strong, although the company has moderately increased its run-rate financial leverage over the last few years.

Asia-Pacific

A.M. Best affirmed the A- financial strength rating and the "a-" long-term issuer credit rating of Taiwan-based Union Insurance Co. Ltd. The outlook of the credit ratings is stable.

The ratings reflect Union Insurance's balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

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A.M. Best affirmed the B++ financial strength rating and the "bbb+" long-term issuer credit rating of Singapore-based EQ Insurance Co. Ltd.

The outlook of the financial strength rating remains stable. The outlook of the long-term issuer credit rating remains negative, which reflects pressure on the company's operating performance assessment over the near term.

The ratings reflect EQ Insurance's balance sheet strength, which A.M. Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

Concurrently, the credit ratings were withdrawn because the company requested to no longer participate in the agency's interactive rating process.

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Fitch affirmed the B insurer financial strength rating of Sri Lanka Insurance Corp. Ltd., with a negative outlook.

The negative outlook reflects the agency's expectations of a further increase in the insurer's investment-related risks, which are heightened in the international rating scale due to its sizable exposure to assets linked to the Sri Lankan sovereign.

At the same time, Fitch affirmed the company's national insurer financial strength rating at AAA(lka), with a stable outlook.

Sri Lanka Insurance's ratings indicate its favorable business profile, and capital position and financial performance that are better than that of the industry, the agency said.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.

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