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A.M. Best Places Credit Ratings of Santa Lucía S.A. Compañía de Seguros y Reaseguros Under Review With Developing Implications


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FOR IMMEDIATE RELEASE

LONDON - MAY 26, 2017 10:10 AM (EDT)
A.M. Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Santa Lucía S.A. Compañía de Seguros y Reaseguros (Santa Lucia) (Spain), the operating holding company of the Santa Lucia group.

The Credit Ratings (ratings) action follows the announcement on 10 May 2017, of the acquisition of Aviva Vida y Pensiones, S.A. de Seguros y Reaseguros and Aviva’s 50% stake in pension joint ventures, Unicorp Vida, Compañía de Seguros y Reaseguros, S.A. and Caja España Vida, Compañía de Seguros y Reaseguros SA, by Santa Lucía. The transaction is subject to regulatory and antitrust approvals, and A.M. Best expects it to close in the fourth quarter of 2017.

The under review with developing implications status reflects that while the acquisition is anticipated to improve Santa Lucía’s market profile and enhance underlying earnings, it is expected to weaken the company’s balance sheet strength over the short term. Furthermore, the significance of the transaction creates execution risk, and its successfulness will be dependent on the company’s ability to integrate a material life operation into its profile.

A.M. Best will continue to monitor the impact of the transaction on Santa Lucía’s ratings fundamentals and expects the under review with developing implications status to be resolved following a comprehensive review once the acquisition is completed.

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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