A.M. Best Co. announced that it has withdrawn the financial strength ratings of the U.K.’s Allied Dunbar Assurance plc and Eagle Star Life Assurance Company Ltd at the request of the companies and assigned an NR-4 (Company Request) rating to each company.
“At the time of the withdrawal, the financial strength ratings of Allied Dunbar and Eagle Star were downgraded to ‘A-‘ (Excellent) from ‘A’ (Excellent) and to ‘B++’ (Very Good) from ‘A’ (Excellent) respectively,” Best noted.
It also indicated that the issuer credit ratings of Allied Dunbar and Eagle Star were downgraded to “a-” from “a” and to “bbb” from “a” respectively, and that the outlook “for both ratings was changed to negative from stable.”
Best said the rating actions “reflect the challenges associated with the announced merger of both companies, current pressures on Eagle Star’s capitalisation and A.M. Best’s opinion in respect of the reduced level of parental support in case further capital needs arise.”
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