AM Best Affirms Credit Ratings of XL Bermuda Ltd and Its Subsidiaries

Rhea-AI Summary

AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) for AXA XL, a subsidiary of AXA S.A., with a stable outlook. The ratings reflect AXA XL’s very strong balance sheet, adequate operating performance, and favorable business profile. Operating performance has shown improvements in early 2021 after volatility due to increased catastrophe losses and COVID-19 impacts. AXA S.A. continues to provide strong support to AXA XL.

Positive

• Affirmation of FSR A+ and Long-Term ICR 'aa-' with stable outlook.
• Very strong balance sheet strength.
• Recent improvements in underwriting performance due to corrective actions.

Negative

• Volatile underwriting results impacted by past catastrophe losses and COVID-19.
• Operating performance has been inconsistent in recent years.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) of XL Bermuda Ltd (AXA XL) (Bermuda) and its subsidiaries. (Please see below for detailed listing). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect AXA XL’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.

AXA XL’s operating performance has been impacted by volatile underwriting results in recent years. This volatility stems from various issues, including increased frequency in catastrophe losses and the COVID-19 pandemic. In response, the group has implemented various changes to leadership and underwriting processes. After a tumultuous 2020, the group’s underlying underwriting performance has begun to show improvements through the first half of 2021, reflecting broad based rate improvement and corrective underwriting actions implemented during the period. As market dynamics stabilize, AM Best anticipates that the group will demonstrate continued improvement and more stable operating results.

Additionally, AXA XL’s parent organization, AXA S.A., remains supportive of the group’s business and continues to contribute both implicit and explicit support.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) have been affirmed, with stable outlooks for XL Bermuda Ltd and the following subsidiaries:

• AXA Insurance Company
• AXA XL Reinsurance Ltd.
• AXA XL Resseguros S.A.
• Catlin Insurance Company Inc.
• Catlin Re Switzerland
• Catlin Specialty Insurance Company
• Greenwich Insurance Company
• Indian Harbor Insurance Company
• T.H.E. Insurance Company
• XL Catlin Insurance Company UK Limited
• XL Insurance America, Inc.
• XL Insurance Company SE
• XL Insurance Company of New York, Inc.
• XL Insurance Switzerland Ltd
• XL Select Insurance Company
• XL Specialty Insurance Company
• XL Re Europe SE
• XL Reinsurance America Inc.

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 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. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210917005411/en/

Dan Hofmeister, CFA, FRM, CAIA, CPCU

Senior Financial Analyst

+1 908 439 2200, ext. 5385

dan.hofmeister@ambest.com

Gregory Dickerson

Associate Director

+1 908 439 2200, ext. 5161

gregory.dickerson@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best

FAQ

What is the current rating of AXA XL as of 2021?

AM Best has reaffirmed AXA XL's Financial Strength Rating at A+ and Long-Term Issuer Credit Rating at 'aa-' with a stable outlook.

How has AXA XL's operating performance changed recently?

AXA XL's operating performance has shown improvements in early 2021 after addressing volatility from catastrophes and the pandemic.

What challenges has AXA XL faced in recent years?

AXA XL has faced challenges due to volatile underwriting results linked to increased catastrophe losses and the COVID-19 pandemic.