A.M. Best has upgraded the financial strength rating to ‘A-‘ (Excellent) from ‘B++’ (Good) and issuer credit rating to “a-” from “bbb+” of UK-based InterGlobal Insurance Company Limited, and has removed the ratings from under review with positive implications and assigned a stable outlook.
The removal of the under review status reflects the completion of the acquisition of InterGlobal by Aetna Global Benefits (Bermuda) Limited, whose ultimate parent is U.S.-based Aetna Inc.
Best explained that the ratings of InterGlobal were “placed under review with positive implications In December 2013, following the announcement of Aetna’s intention to acquire the company. On 23 April 2014, Aetna announced the completion of the acquisition, which was consummated by a transfer of shareholding of InterGlobal to Aetna through its Bermudian subsidiary, Aetna Global Benefits (Bermuda) Limited. No other changes occurred, and the integration process is expected to start in the near term.”
Best said that upgrading the ratings “reflects the strength of capital and financial wherewithal of Aetna to support InterGlobal if necessary. The acquisition of InterGlobal fits into Aetna’s strategy to serve a growing expatriate business and explore other new lines and markets.”
Best also noted that “InterGlobal’s risk-adjusted capitalization is strong and has improved over the past two years, driven by retained profits and a capital injection in 2011. InterGlobal’s technical result improved significantly in 2013 to $2.3 million (2012: $800,000 loss) following actions taken by management, which include price increases and non-renewal of large loss-making accounts. InterGlobal’s gross premium income increased slightly by 5 percent to $117 million in 2013, in line with expectations.
“Downward rating pressure could occur if underwriting profitability were to decline severely and risk-adjusted capitalization was not replenished to a level commensurate with the rating. There are no upward rating pressures at present.”
Source: A.M. Best
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