Standard & Poor’s Ratings Services has issued a statement indicating that its ratings on the Alea Group are unaffected by the announcement that is to sell the renewal rights of its U.S. primary program business written by Alea North America Insurance Co. and Alea North America Specialty Insurance Co. (See IJ Website “National” Nov. 22).
The bulletin concerns S&P’s ratings for “Alea Europe AG, Alea (Bermuda) Ltd., Alea Global Risk Ltd., Alea Jersey Ltd., Alea London Ltd., Alea North America Insurance Co., and Alea North America Specialty Insurance Co. (all rated local currency, ‘BBB+/Negative/), the operating entities that constitute the Alea group,” said S&P
“Although the companies will no longer underwrite business, the group retains ownership of them, and they continue to benefit from the existing cross guarantees between the group’s operating entities,” the bulletin continued. “The group continues to explore all options for its remaining businesses.”
S&P noted that Alea’s “BBB+” ratings “are underpinned by strong Alea group capitalization, and our expectation continues to be that capital adequacy will remain at its current level. Regulatory approval would be required before any withdrawal of capital from the operating companies, and management has not sought such approval at this time.”
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