AM Best Comments on Credit Ratings of LIA Holdings Limited and Its Rated Subsidiary Following a Fine From Commissariat aux Assurances

LONDON--(BUSINESS WIRE)--AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Lombard International Assurance S.A. (LIA) (Luxembourg), remain unchanged following the announcement that the company had been fined by the Commissariat aux Assurances (CAA), its regulating body. Concurrently, AM Best has commented that the Long-Term ICR of “bbb-” (Good) of LIA Holdings Limited (Lombard International) (United Kingdom), a non-operating holding company, remains unchanged. The outlook of these Credit Ratings (ratings) is negative.

On 20 March 2024, the CAA indicated that LIA had been fined EUR 1.7 million in relation to shortcomings in the company’s anti-money laundering (ALM) and counter-terrorist financing (CTF) diligence processes identified during a regulatory audit between November 2021 and February 2022.

Based on preliminary financial indicators, AM Best considers the fine to be immaterial to LIA's earnings and solvency level. Furthermore, since the audit, LIA has initiated a compliance plan and taken a number of comprehensive corrective actions to strengthen its ALM and CTF diligence procedures and measures, in full cooperation with the CAA.

AM Best considers that the company’s credit profile is unchanged as a result of this regulatory action. AM Best will continue to monitor closely LIA’s rating fundamentals, including the developments of the company’s enterprise risk management.

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