Financial News
AM Best Downgrades Issuer Credit Ratings of Lumico Life Insurance Group Members; Places Credit Ratings Under Review With Negative Implications
AM Best has downgraded the Long-Term Issuer Credit Ratings to “a” (Excellent) from “a+” (Excellent) and affirmed the Financial Strength Rating of A (Excellent) of Lumico Life Insurance Company (Jefferson City, MO) and Elips Life Insurance Company (headquartered in Schaumburg, IL). These two companies are referred to as Lumico Life Insurance Group. Concurrently, AM Best has placed these Credit Ratings (ratings) under review with negative implications.
The ratings reflect Lumico Life Insurance Group’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM).
On May 16, 2024, Swiss Re Ltd (Swiss Re) announced plans to withdraw from the iptiQ business, of which Lumico Life Insurance Group is a part of and will consider options for the different entities in a manner and timeframe that maximizes value for the group, subject to applicable regulatory approvals and notifications.
The rating downgrades reflect a revision to Lumico Life Insurance Group’s ERM assessment to appropriate from very strong. AM Best expects that Lumico Life Insurance Group will become less strategically important to the company’s strategy.
The ratings are expected to remain under review with negative implications until the analytical team has assessed the impact of this strategic change on the entity’s rating fundamentals. Lumico Life Insurance Group currently receives lift from Swiss Re.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240523772763/en/
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