Standard & Poor’s Ratings Services has lowered its insurer financial strength rating on Investors Insurance Corp. (IIC) to ‘BBB-‘ from ‘A’. The outlook is negative.
At the same time, they withdrew the rating on IIC at the company’s request.
The downgrade follows SCOR’s announcement that it has completed the sale of IIC to Athene for US$55 million. We previously rated IIC on the basis of a guarantee issued by SCOR SE covering IIC’s insurance and reinsurance liabilities, in accordance with our group methodology criteria. Following the sale, we understand that the guarantee ceases to be applicable for new business written by IIC under its new ownership and therefore the ‘BBB-‘ rating includes no support from SCOR.
At the time of the withdrawal, the outlook was negative, since IIC’s financial and business strategy following the acquisition by Athene is unclear to us.
Source : Standard & Poor’s