Standard & Poor’s Ratings Services announced that it has revised its public information-based counterparty credit and insurer financial strength ratings on Mannheimer Lebensversicherung AG to ‘R’ from ‘CCCpi,’ and noted that “an insurer rated ‘R’ is under regulatory supervision owing to its financial condition.”
The rating agency, however, affirmed its ‘BBpi’ rating on Mannheimer Leben’s sister company Mannheimer Versicherung AG.
“The rating action follows the German regulator’s (Bundesanstalt fur Finanzdienstleistungsaufsicht; or BaFin) June 26, 2003, announcement that Mannheimer Leben’s insurance assets and liabilities will be transferred to Protektor Lebensversicherungs-AG (Protektor),” stated S&P credit analyst Karin Clemens. Mannheimer Leben also announced that it will close to new business.
S&P’s announcement explained that “Protektor is a pan-industry safety net that was set up to safeguard policyholders’ investments. The German regulatory body confirmed that Protektor would meet all legal obligations against policyholders.”
Commenting on the affirmation of Mannheimer Versicherung’s ratings, Clemens noted that it “reflects Standard & Poor’s expectation that the company will continue to meet its policyholder obligations,” and is further supported by “the regulator’s announcement that there is no need for regulatory measures in respect of Mannheimer Versicherung.”
S&P said it would “withdraw the rating on Mannheimer Leben once the portfolio transfer to Protektor has been completed.”
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