A.M. Best Affirms Ratings of XL Group
A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” of the property/casualty subsidiaries of the holding company, XL Group plc (XL) (Ireland) XL -4.08% led by XL Insurance (Bermuda) Ltd (Hamilton, Bermuda).
Concurrently, A.M. Best has affirmed the ICR of “bbb” of XL and XL Group Ltd. (Cayman Islands) as well as all debt ratings for XL Group Ltd. The outlook for all ratings is stable.
A statement released said, “The rating affirmations reflect the organization’s excellent risk-based capitalization, strong worldwide market presence and the completed de-risking of the group’s investment portfolio. Although XL subsidiaries’ property/casualty operating results are unprofitable through the first six months of 2011 (with a combined ratio of 110% due to the worldwide catastrophes), the group averaged a favorable combined ratio of 92.3% for the previous five years.”
“A.M. Best remains encouraged by the strategies implemented by the XL management team. These strategies are supported by an enhanced risk management program and a continued focus on underwriting as the key component of the group’s business approach. Management’s focus on its core underwriting strengths has been exhibited by the recent addition of a substantial number of new senior underwriters.”
“Furthermore, as a result of XL’s completed de-risking of its investment portfolio, the organization has successfully reduced the level of market volatility in its investment results, which for the past several years over shadowed the solid operating performance of its core businesses.”
