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A.M. Best Changes Credit Ratings of CBL Ins Ltd Following Regulatory Action; Withdraws Issuer Credit Rating of CBL Corp Ltd


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Jason Shum
Associate Director, Analytics
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jason.shum@ambest.com

Chi-Yeung Lok
Director, Analytics
+65 6303 5016
chi-yeung.lok@ambest.com

Christopher Sharkey
Manager, Public Relations
(908) 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
(908) 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

SINGAPORE - FEBRUARY 23, 2018 04:38 PM (EST)
A.M. Best has removed from under review with negative implications and changed the Financial Strength Rating to a Non-Rating Designation of E (Under Regulatory Supervision) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “e” from “bbb+” of CBL Insurance Limited (CBL) (New Zealand) following a regulatory action that placed the insurer in interim liquidation. Concurrently, A.M. Best has removed from under review with negative implications and withdrawn the Long-Term ICR of “bb+” of CBL Corporation Limited (CCL) (New Zealand) based on the same regulatory action.

These rating actions follow the High Court of New Zealand’s announcement on Feb. 23, 2018, that it placed CBL in interim liquidation, following a request from the Reserve Bank of New Zealand.

A.M. Best had been closely monitoring the activity surrounding CBL since taking an earlier rating action on Feb. 6, 2018. The ratings of CCL and CBL were downgraded and placed under review with negative implications at that time following CCL’s announcement that CBL’s insurance reserves for its long claim-tail French construction insurance business needed to be strengthened, and due to the resulting capital strain and pending the completion of an intended capital raise within weeks. In addition, the under review status had reflected the need to assess the adequacy of the strengthened reserves and the corrective actions taken by management to address the causes of the reserve shortfall.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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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