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FOR IMMEDIATE RELEASE
LONDON - FEBRUARY 28, 2019 11:03 AM (EST)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of iptiQ Life S.A. (iptiQ) (Luxembourg), the ultimate parent of which is Swiss Re Ltd (Swiss Re). The outlook of these Credit Ratings (ratings) remains stable.
The ratings reflect iptiQ’s balance sheet strength, which AM Best categorises as very strong, as well as its marginal operating performance, limited business profile and very strong enterprise risk management.
The ratings also benefit from lift from iptiQ’s parent company, Swiss Re. AM Best expects the Swiss Re group to continue to provide support to iptiQ when required, due to its important role in Swiss Re’s long-term plans to grow its individual life/health (L/H) insurance business.
iptiQ’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed as strongest, benefiting from its low, but growing, net underwriting leverage and a conservative investment portfolio allocation. The company also benefits from very strong internal reinsurance support provided by the Swiss Re group and from regular capital injections from Swiss Re to support growth and offset operating losses during the company’s start-up phase.
iptiQ was established in 2014 and underwrites primary L/H retail policies sold through distribution partners. In 2018, the company’s book of business grew significantly, boosted by its expansion into the Dutch health care market. Currently, iptiQ has a limited market position and a concentrated portfolio in terms of geography and distribution partners, although diversification is expected to improve in the medium term.
This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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