AM Best, a global credit rating agency, has downgraded Standard Life and Accident Insurance Company’s (SLAICO) financial strength rating to A- from A as well as the long-term issuer credit rating to a- from a.
The agency has also maintained the under-review status of the credit ratings and revised the implications status to developing, previously being negative.
The actions by AM Best were driven by Core Specialty Insurance Holdings, Inc. (Core Specialty) acquiring the firm as the downgrades reflected the revision of SLAICO’s business profile assessment from favorable to limited. The assessment was in line with Core Specialty since SLAICO no longer benefits from the business profile of its former parent.
With the finalized sale, AM Best determined that the company needed further monitoring before removing its ratings from under review. Because of this, the implication of the under-review status of SLAICO was revised from negative to developing.
The credit ratings are a reflection of the strength of SLAICO’s balance sheet as well as its adequate operating performance, limited business profile, and appropriate enterprise risk management.
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