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 Elips Life AG (elipsLife) (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 Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.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 primarily reflect the expectation that the Swiss Re group, of which elipsLife is a part, will continue to provide considerable support to the entity, when required. The Swiss Re group provides explicit support to elipsLife in the form of reinsurance and regular capital injections, the latest of which was paid in 2015. The company is important to the Swiss Re group as part of its strategic investment in primary life and health insurance.
In addition, the ratings reflect elipsLife’s adequate risk-adjusted capitalisation, profitable operating performance and developing niche business profile.
The company’s risk-adjusted capitalisation has been volatile due to premium growth and the fact that capital injections from the parent have been staggered. The Swiss Re group follows a strategy of capitalising its subsidiaries to the regulatory requirement plus a buffer, and so it is expected that elipsLife will continue to benefit from adequate risk-adjusted capitalisation.
elipsLife has been profitable since 2010, although results remain subject to volatility. For 2015, it is expected that elipsLife will report positive earnings. However, foreign exchange losses will reduce its profitability compared to the two previous years.
elipsLife has grown significantly since its creation in 2008, and is developing a niche market position with focus on group life and health policies for pension funds, corporations and affinity groups.
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