ACE outlook upgraded to positive

AM Best Co. has revised the outlook to positive from stable and  affirmed the financial strength ratings of ACE’s North American subsidiaries. 

Recieving an A+ issuer credit ratings (ICR) were ACE Bermuda Insurance Ltd. (ACE Bermuda), ACE Tempest Reinsurance Ltd. (ACE Tempest Re) (both domiciled in Bermuda), the members of the ACE American Pool and ACE INA Insurance (Canada). 

AM Best has also revised the outlook to positive from stable and affirmed the FSR of A+ (Superior) and ICR of “aa” of ACE Tempest Re’s parent, ACE Tempest Life Reinsurance Ltd (ATLRE) (Bermuda). 

Concurrently, A.M. Best has revised the outlook to positive from stable and affirmed the ICR and senior debt ratings of “a” of ACE and its wholly owned downstream holding company, ACE INA Holdings Inc., whose debt is fully guaranteed by ACE.

In addition, A.M. Best has upgraded  the FSR to A+ (Superior) from A (Excellent) and the ICR to “aa-” from “a+” of Combined Insurance Company of America (Glenview, IL) and Combined Life Insurance Company of New York (Latham, NY) (Combined companies). Additionally, A.M. Best has affirmed the FSR of A- (Excellent) and ICR of “a-” of ACE Life Insurance Company (Stamford, CT). The rating outlook for these life and health companies is stable.

AM Best said ina  press release: “The ratings for ACE’s core property/casualty operations reflect their strong risk-adjusted capitalization, diversified global operation enhanced by prudent acquisitions over the past few years, and historically favourable record of generating strong earnings and cash flows. 

Favourable

“ACE’s core property/casualty operations’ balance sheet is strengthened by controlled financial leverage, a relatively conservative investment portfolio that generates stable earnings and favourable loss reserve development in recent years. 

“The positive rating factors are derived from management’s experience and consistent focus on underwriting profitability generated by effective risk selection and pricing standards, and maintenance of appropriate policy limits and exposure to catastrophes, including the use of reinsurance to manage net retentions. 

“ACE’s strong enterprise risk management (ERM) programme relies on close collaboration of executives and operating departments to identify, assess and control enterprise risk and accumulations. The effectiveness of the ERM programme is demonstrated by risk-adjusted capital levels and overall earnings that have remained strong through soft market conditions, the global financial crisis and the increase in global catastrophe and weather-related events.”