LONDON--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating (FSR) of A- (Excellent) and the issuer credit rating (ICR) of “a-” of PrismaLife AG (PrismaLife) (Liechtenstein). The outlook for both ratings remains stable.
Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best's interactive rating process.
The ratings of PrismaLife reflect its strong risk-adjusted capitalisation and track record of good financial results. An offsetting factor is the dependence of premium volumes on demand for unit-linked products in Germany.
PrismaLife’s risk-adjusted capitalisation remains strong, despite modest dividend payments in 2013 and 2014. Capital strain due to moderate growth in new business in 2014 and 2015 will be restricted by limited guarantees on the products underwritten, as well as the low level of investment risk retained. The company’s financial leverage remains within the tolerance levels for the ratings.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
• Equity Credit for Hybrid Securities
• Insurance Holding Company and Debt Ratings
• Risk Management and the Rating Process for Insurance Companies
• Understanding Universal BCAR
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
This press release relates to rating(s) 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 visit A.M. Best’s Ratings & Criteria Center.
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