A.M. Best Affirms Ratings Of XL Group
A.M. Best Co. has affirmed the financial strength rating of A [Excellent] and issuer credit ratings of “a” of the property/casualty subsidiaries of the holding company, Bermuda-based XL Group plc led by XL Insurance Ltd.
Concurrently, A.M. Best has affirmed the ICRs of “bbb” of XL and XLIT Ltd as well as all debt ratings of XLIT Ltd. The outlook for all ratings is stable.
“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,” a statement said.
“XL subsidiaries’ property/casualty operating results have been profitable through the first six months of 2012, with a combined ratio of 93.0%. The group averaged a favorable combined ratio of 95.9% for the previous five years.
“XL’s debt-to-capital ratio is expected to remain in the 15%-25% range as capital is anticipated to be enhanced by strong earnings. The fixed charge coverage has stabilized and is expected to remain comparable with the current level over the near term.”
