Ratings pressured firm in expansion bid
Fitch Ratings has maintained the 'BBB' insurer financial strength rating for Bermuda-based Aspida Life Re Ltd. on rating watch negative.
The rating notice continues to reflect Fitch's expectation that the life writer’s IFS rating will either be maintained or downgraded to 'BBB-' upon resolution of the rating watch, which is expected over the near term following a more in depth review with senior management of Aspida Holdings Ltd.
Fitch notes Aspida Holdings has made progress towards establishing its US-based retail annuity platform with its recent acquisition of Global Bankers Insurance Group, LLC, an insurance service provider and operations company.
Aspida Holdings also has an agreement to purchase a US life insurance company and is awaiting customary regulatory approvals to close.
The US life company is broadly licensed nationwide and expects to be in a position to begin issuing new retail products on its life and annuity platform in 2022.
In its review, Fitch will consider Aspida's group operating strategy, financial profile, and strategic fit of businesses in formulating its view of the company's group credit profile.
Fitch does not expect a positive rating action to Aspida Re's IFS rating over the near to medium term.
Aspida Life Re Ltd. (Aspida Re) (formerly F&G Reinsurance Ltd) is a Class E licensed company based in Bermuda that provides annuity and life insurance companies with tailored risk management solutions.
Aspida Re is an indirect subsidiary of Ares Management Corporation, a global alternative investment manager with $262bn1 in AUM.