(ACE) ACE Limited Sees Rating Action From A.M. Best

A.M. Best Co. has raised the issuer credit ratings (ICR) and senior debt ratings to “a” from “a-” for ACE Limited (ACE). The outlook has been revised to stable from positive.

The rating agency also raised ICR and senior debt ratings to “a” from “a-” for ACE INA Holdings Inc.

Additionally, A.M. Best has raised the ICR to “aa” from “aa-” and reiterated the financial strength rating (FSR) of A+ (Superior) for ACE Bermuda Insurance Ltd., ACE Tempest Reinsurance Ltd. , ACE American Pool and its members, ACE INA Insurance.

Also, A.M. Best Europe – Rating Services Limited has raised the ICR to “aa” from “aa-” and reiterated the FSR of A+ (Superior) for ACE European Group Limited.

The rating agency has revised the outlook for all ICRs to stable from positive, but affirmed the outlook for all FSRs at stable.

The ICR rating upgrade came on the back of solid risk-adjusted capitalization, international exposure, generating continued profitability and cash flow and strong balance sheet. Partially offsetting these positives are exposure to emerging asbestos and environmental claims and natural and man-made catastrophes; and higher than industry average ceded reinsurance leverage.

A.M. Best has upgraded the ICR to “aa” from “aa-” and affirmed the FSR of A+ (Superior) of ACE Tempest Life Reinsurance Ltd. Concurrently, the rating agency upgraded the ICR to “a+” from “a” and reiterated the FSR of A (Excellent) of Combined Insurance Company of America and Combined Life Insurance Company of New York.

The ratings of ACE Tempest Life Reinsurance consider solid capitalization and continued better operating performances.

Based on solid operating performances and better cost structure, the rating agency has upgraded the ICR of Combined Insurance Company of America and Combined Life Insurance Company of New York.

Also, A.M. Best has reiterated the FSR of A- (Excellent) and ICR of “a-” of ACE Life Insurance Company. The outlook for both the ratings remains stable.

Based on enhanced focus on operations generating higher returns, solid risk-adjusted capital position and a superior quality of portfolio of asset, the rating agency has reiterated its rating on ACE Life.

Concurrently, A.M. Best reiterated the FSR of B- (Fair) and ICR of “bb-” of Century Indemnity Company, the run-off entity of ACE. The outlook for both the ratings remains stable.

We maintain our Neutral recommendation on ACE Limited. The quantitative Zacks #3 Rank (short-term Hold rating) for the company indicates no clear directional pressure on the shares over the near term.

Headquartered in Zurich, Switzerland, ACE Limited, through its subsidiaries, provides a range of insurance and reinsurance products to commercial and individual customers worldwide. The company competes with American International Group Inc. (AIG) and The Travelers Companies Inc. (TRV).

ACE LIMITED (ACE): Free Stock Analysis Report

AMER INTL GRP (AIG): Free Stock Analysis Report

TRAVELERS COS (TRV): Free Stock Analysis Report

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