A.M. Best downgrades credit ratings of GENERALI Lebensversicherung A.G.
The rating action follows the announcement on Sept. 28, 2017 that Assicurazioni GENERALI S.p.A. (Generali), the ultimate parent of GENERALI Leben, intends to put the company into run-off during the first quarter of 2018, with Generali not excluding of the possibility that the GENERALI Leben portfolio will be disposed of in the future.
The rating downgrades reflect A.M. Best's view that GENERALI Leben is no longer core to the strategy and ongoing success of the GENERALI group, and that the level of support from GENERALI that the company could expect to benefit from, if needed, has diminished. Furthermore, as the company enters into run-off, its prospective business profile and earnings are expected to deteriorate, which could negatively impact its balance sheet strength.
The ratings will remain under review with negative implications as A.M. Best assesses the full impact of the announced decision on the rating fundamentals of GENERALI Leben, following dialogue with the management of GENERALI Leben and the GENERALI group.