News Column

A.M. Best Places Ratings of State Farm International Life Insurance Company Ltd. Under Review

January 24, 2014

OLDWICK, N.J. --(BUSINESS WIRE)-- A.M. Best Co. has placed under review with negative implications the financial strength rating of A+ (Superior) and the issuer credit rating of ďaaĒ of State Farm International Life Insurance Company Ltd. (SFI) ( Bermuda ). The rating actions follow the recent announcement by Montreal -based Desjardins Group to acquire all of State Farm Mutual Automobile Insurance Company ís ( State Farm ) ( Bloomington, IL ) Canadian property/casualty, life insurance and Canadian mutual fund, loan and living benefits businesses. State Farmís life insurance business is conducted in Canada through a branch of SFI. Desjardins Group is the leading cooperative financial group in Canada , and the company anticipates becoming the second-largest property/casualty insurer in the country. The property/casualty and life insurance transactions will be structured as assumption reinsurance agreements. The ratings will remain under review until the completion of the transaction, which is expected to occur in January 2015 . Upon completion of the transaction, A.M. Best expects the ratings of SFI to be withdrawn, as the policyholder obligations as well as the majority of its assets are expected to transfer to the Desjardin Group . Additionally, in A.M. Bestís opinion, the sale of the property/casualty business produced by State Farmís Canadian branches will not create a material change in the financial strength and ongoing operating performance of State Farm Fire and Casualty Company ( Bloomington, IL ) or the ultimate parent, State Farm . The methodology used in determining these ratings is Bestís Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bestís rating process and contains the different rating criteria employed in the rating process. Bestís Credit Rating Methodology can be found at www.ambest.com/ratings/methodology . A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com . Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED. A.M. Best Co. Joan Sullivan Senior Financial Analyst (908) 439-2200, ext. 5144 joan.sullivan@ambest.com or William Pargeans Assistant Vice President (908) 439-2200, ext. 5359 william.pargeans@ambest.com or Rachelle Morrow Senior Manager, Public Relations (908) 439-2200, ext. 5378 rachelle.morrow@ambest.com or Jim Peavy Assistant Vice President, Public Relations (908) 439-2200, ext. 5644 james.peavy@ambest.com Source: A.M. Best Co.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Business Wire


Story Tools