LONDON--(BUSINESS WIRE)--A.M. Best has downgraded the Financial Strength Rating to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Rating to “a-” from “a” of Generali Lebensversicherung A.G. (Generali Leben) (Germany). Concurrently, A.M. Best has placed these Credit Ratings (ratings) under review with negative implications.
The rating action follows the announcement on Sept. 28, 2017 that Assicurazioni Generali S.p.A. (Generali), the ultimate parent of Generali Leben, intends to put the company into run-off during the first quarter of 2018, with Generali not excluding of the possibility that the Generali Leben portfolio will be disposed of in the future.
The rating downgrades reflect A.M. Best’s view that Generali Leben is no longer core to the strategy and ongoing success of the Generali group, and that the level of support from Generali that the company could expect to benefit from, if needed, has diminished. Furthermore, as the company enters into run-off, its prospective business profile and earnings are expected to deteriorate, which could negatively impact its balance sheet strength.
The ratings will remain under review with negative implications as A.M. Best assesses the full impact of the announced decision on the rating fundamentals of Generali Leben, following dialogue with the management of Generali Leben and the Generali group.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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