Best Affirms Ratings For XL Life
A.M. Best Co. today [Mar.6] affirmed the financial strength rating of A- [Excellent] and issuer credit rating of “a-” of Bermuda-based XL Life Ltd. The outlook for both ratings is stable.
The agency said ratings of XL Life reflect its sufficient risk-based capital position, which has historically been supported by parental capital infusions. The ratings also reflect the company’s historic role within the life reinsurance segment of Dublin- and Bermuda-based XL Group plc, a business line that is no longer emphasized.
A Best analyst said: “Partially offsetting these positive rating factors are XL Life’s limited operating profile as a run-off operation and the volatility recorded in recent earnings due in part to realized investment losses. The most recent investment losses were, in part, due to strategic investment realignment consistent with wider XL initiatives”.
A.M. Best believes XL Life is well positioned at its current ratings. Negative rating actions could occur if XL Life’s capitalization or operating performance falls markedly short of A.M. Best’s expectations. Negative rating pressure also could occur if the business profile of the company changes materially.
