Best’s News & Research Service - December 14, 2023 10:25 AM (EST)
AM Best Removes From Under Review, Affirms Credit Ratings of Core AXL Group Members; Assigns Ratings to Lombard Int'l Global Ins
- December 14, 2023 10:25 AM (EST)
Oldwick //BestWire// - AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of Lombard International Life Assurance Company (Philadelphia, PA) and its wholly owned subsidiary, Lombard International Life Assurance Company of New York (New York, NY), Lombard International Life Assurance Company (Bermuda) Ltd. (Bermuda) and Lombard International Life Ltd. (Bermuda). In addition, AM Best has assigned a FSR of A- (Excellent) and a Long-Term ICR of “a-” (Excellent) to Lombard International Global Insurance Ltd. (Bermuda). These companies are collectively referred to as AXL Group, LP (AXL Group). The outlooks assigned to all these Credit Ratings (ratings) is stable.
The ratings reflect AXL Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The rating actions follow BroadRiver Asset Management LP’s completed acquisition of AXL Group on Nov. 30, 2023, and its financial support, demonstrated by its infusion of capital and the creation of a capital maintenance agreement. AXL Group’s balance sheet strength assessment of very strong at the close of the transaction is underpinned by its consolidated risk-adjusted capitalization, which is assessed as strongest as measured by Best’s Capital Adequacy Ratio (BCAR).
AXL Group is the market leader in the U.S. private placement life and annuity markets. AXL Group’s business and liability profiles are lower risks, as they are primarily separate account platforms in which policyholders take the investment risk and use a reinsurance program consisting of highly rated reinsurers to transfer a material amount of the mortality risk.
Partially offsetting these positive rating factors are the challenges related to operating in the specialized ultra-high net worth business, including the complexity of the customized products and services offered and possible regulatory challenges.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.