AM Best revises issuer credit ratings outlook to stable for AXA Art
AM Best has revised the issuer credit ratings (ICR) outlook to stable from negative and affirmed the financial strength rating (FSR) of A (Excellent) and ICRs of “a+” of AXA Insurance Company (AXA Insurance) and AXA Art Insurance Corporation (AXA Art) (both domiciled in New York, NY). The outlook for the FSR is stable.
Concurrently, AM Best has affirmed the FSR of B++ (Good) and the ICR of “bbb” of Coliseum Reinsurance Company (Coliseum Re) (Wilmington, DE), which is in run off. The outlook for these ratings is stable. All of the above companies are U.S. subsidiaries of AXA S.A. (AXA) (France).
AM Best stated in a press release that the ratings of AXA Art recognize its strong risk-adjusted capitalization, favourable historical operating results and recognized expertise in the fine arts insurance line.
“The ratings reflect the implicit and explicit support provided to the company through reinsurance programs with AXA affiliates,” it stated. “Beginning January 1, 2014, coverage for the fine art business is being provided by AXA Insurance. Current exposures will remain under AXA Art to their conclusion.”
The outlook for the ratings of AXA Insurance and AXA Art reflect AM Best’s expectation of continued underwriting discipline, proactive strategic management and ongoing capital support.
The outlook also takes into account the resolution of key concerns with AXA’s exposures to uncertainty in the Eurozone and the potential impact on the US operations.
Upward movement on the ratings of AXA Insurance and AXA Art could occur with extended periods of favorable underwriting and overall operating results through market cycles. Negative rating actions could occur with loss of capital position or perceived lessening of support provided by AXA. Separately, Coliseum Re is subject to potential negative rating actions should adverse development occur in the remaining run off exposures.