Lombard companies in Bermuda are no longer under review
AM Best has removed from under review with developing implications and affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit ratings of “a-” (Excellent) of Lombard International Life Assurance Company of Philadelphia and its wholly-owned subsidiaries, including Bermudian-based Lombard International Life Assurance Company Ltd and Lombard International Life Ltd.
The ratings also apply to Lombard International Life Assurance Company of New York.
In addition, AM Best has assigned a FSR of A- (Excellent) and a long-term ICR of “a-” (Excellent) to Bermudian-based Lombard International Global Insurance Ltd.
These companies are collectively referred to as AXL Group, LP.
The outlooks assigned to all these credit ratings is stable.
The ratings reflect AXL Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The rating actions follow BroadRiver Asset Management LP’s completed acquisition of AXL Group last month.and its financial support, demonstrated by its infusion of capital and the creation of a capital maintenance agreement.
AXL Group's balance sheet strength assessment of very strong at the close of the transaction is underpinned by its consolidated risk-adjusted capitalisation, which is assessed as strongest as measured by Best's capital adequacy ratio.
AM Best said AXL Group is the market leader in the US private placement life and annuity markets. AXL Group’s business and liability profiles are lower risks, as they are primarily separate account platforms in which policyholders take the investment risk and use a reinsurance programme consisting of highly rated reinsurers to transfer a material amount of the mortality risk.
Partially offsetting these positive rating factors are the challenges related to operating in the specialised ultra-high net worth business, including the complexity of the customised products and services offered and possible regulatory challenges.
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