S&P Raises ACE’s Financial Strength Ratings to 'AA-'
Standard & Poor’s (S&P) has upgraded the financial strength ratings for ACE’s core operating insurance companies to “AA-” (Very Strong). The new rating applies to ACE’s core North America, Europe and Bermuda operating companies, which together account for more than 75% of the company’s business globally, based on net premiums written. S&P’s rating outlook for these companies is “Stable.”
See S&P’s news release | See S&P’s summary analysis | See S&P’s full analysis
In upgrading the financial strength rating, S&P cited ACE’s “very strong and consistent operating performance, very strong competitive position, positive management and corporate strategy, and very strong and improved capital adequacy.” In its announcement, S&P said ACE’s “top managers are actively involved in the operations of the business, backed by a strong staff with significant depth and breadth” and also noted that the ratings reflect the company’s “strong enterprise risk management practices.” While S&P currently rates ACE’s ERM as “Strong,” it noted in its full rating report on ACE that “the firm's ERM appears on course to eventually transition to an excellent ERM score.”
In addition, S&P upgraded the issuer credit (senior debt) rating of ACE Limited, the ACE Group’s Switzerland-based holding company and ACE INA Holdings, to “A,” citing the company's “very strong liquidity and improved financial flexibility.”