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AM Best cuts SanlamAllianz Re ratings amid ERM review
AM Best downgraded SAZ Re’s Financial Strength Rating to B++ and kept both ratings under review with implications shifting to developing.
AM Best lowered the Financial Strength Rating of SanlamAllianz Re Ltd, the Mauritius-based reinsurer also known as SAZ Re, to B++ from A-, citing its evolving assessment of the company’s governance and capital-related factors tied to an enterprise risk management review.
The rating agency also reduced SAZ Re’s Long-Term Issuer Credit Rating to “bbb+” from “a-,” while changing the previous implications status from negative to developing.
AM Best said the ratings still reflect what it considers strong balance sheet strength and strong operating performance, but it assessed SAZ Re’s business profile as neutral and its enterprise risk management as marginal.
The downgrade followed AM Best’s revision of SAZ Re’s ERM assessment, which it linked to significant weaknesses in the company’s comp, and the agency noted continued support from SAZ Re’s strategic importance to its ultimate co-shareholders, Sanlam Limited and Allianz SE.