A.M. Best Affirms Ratings of XL Life Ltd.
OLDWICK, N.J. -- March 6, 2013
A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and
issuer credit rating of “a-” of XL Life Ltd. (XL Life) (Hamilton, Bermuda).
The outlook for both ratings is stable.
The ratings of XL Life reflect its more than adequate risk-adjusted
capitalization position relative to its investment and insurance risks. The
ratings also reflect the company’s business profile within the life
reinsurance segment of XL Group plc, a business line that is no longer
Partially offsetting these positive rating factors are XL Life’s limited
operating profile as a run-off operation and the continued low interest rate
environment, which will challenge the company's annuity book of business.
Although earnings recently have been volatile due in part to realized
investment losses and strategic investment realignment, XL Life recorded
positive net income in 2011 and 2012.
A.M. Best believes XL Life is well positioned at its current rating level.
Negative rating actions could occur if XL Life’s capitalization or operating
performance falls markedly short of A.M. Best’s expectations.
The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Best’s Credit Rating Methodology can be found at
Founded in 1899, A.M. Best Company is the world’s oldest and most
authoritative insurance rating and information source. For more information,
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
A.M. Best Co.
Edward Kohlberg, 908-439-2200, ext. 5664
Senior Financial Analyst
Raj Shah, 908-439-2200, ext. 5409
Assistant Vice President
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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