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FOR IMMEDIATE RELEASE
LONDON - MARCH 27, 2024 01:46 PM (EDT)
AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Lombard International Assurance S.A. (LIA) (Luxembourg), remain unchanged following the announcement that the company had been fined by the Commissariat aux Assurances (CAA), its regulating body. Concurrently, AM Best has commented that the Long-Term ICR of “bbb-” (Good) of LIA Holdings Limited (Lombard International) (United Kingdom), a non-operating holding company, remains unchanged. The outlook of these Credit Ratings (ratings) is negative.
On 20 March 2024, the CAA indicated that LIA had been fined EUR 1.7 million in relation to shortcomings in the company’s anti-money laundering (ALM) and counter-terrorist financing (CTF) diligence processes identified during a regulatory audit between November 2021 and February 2022.
Based on preliminary financial indicators, AM Best considers the fine to be immaterial to LIA's earnings and solvency level. Furthermore, since the audit, LIA has initiated a compliance plan and taken a number of comprehensive corrective actions to strengthen its ALM and CTF diligence procedures and measures, in full cooperation with the CAA.
AM Best considers that the company’s credit profile is unchanged as a result of this regulatory action. AM Best will continue to monitor closely LIA’s rating fundamentals, including the developments of the company’s enterprise risk management.
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 Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.