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A.M. Best Places Credit Ratings of XL Group Ltd and Its Subsidiaries Under Review with Developing Implications
[March 06, 2018]

A.M. Best Places Credit Ratings of XL Group Ltd and Its Subsidiaries Under Review with Developing Implications


A.M. Best has placed under review with developing implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a+" of the property/casualty subsidiaries of XL Group Ltd (XL) (Bermuda) [NYSE: XL]. Additionally, A.M. Best has placed under review with developing implications the Long-Term ICR of "bbb+" of XLIT, Ltd. (Cayman Islands) and the Long-Term Issue Credit Rating (Long-Term IR) of the preference share issues of Catlin Insurance Company Ltd. (Bermuda). A.M. Best also has placed under review with developing implications the Long-Term ICR of "bbb+" of XL. See below for a detailed listing of the companies and Credit Ratings (ratings).

A.M. Best also has placed under review with developing implications the FSR of B++ (Good) and the Long-Term ICR of "bbb+" of XL Life Ltd (Bermuda), the FSR of A (Excellent) and the Long-Term ICR of "a+" of Lloyd's Syndicate 2003 (United Kingdom), and the FSR of A- (Excellent) and the Long-Term ICR of "a-" of T.H.E. Insurance Company (New Orleans, LA).

The rating actions follow the announcement of an agreement to purchase XL by AXA Group on March 5, 2018, for $57.60 per share, for a total consideration value of $15.3 billion. The transaction represents a 33% premium to XL closing share price on March 2, 2018. This transaction is expected to close in the second half of 2018, subject to approval by XL shareholders and other customary closing conditions, including the receipt of required regulatory approvals, and is expected to be financed as an all cash deal. The ratings will remain under review until the deal closes, and A.M. Best completes its evaluation of organizational changes and XL's strategic position within the new structure. A positive rating outcome could occur depending on the levels of implicit and explicit support provided to XL and its subsidiaries after the close of the transaction. However, if the transaction is unsuccessful there could be negative rating pressure on XL if operational issues emerge. The under review status may be updated in the interim period if new facts and circumstances present themselves.

The FSR of A (Excellent) and Long-Term ICRs of "a+" have been placed under review with developing implications for the following subsidiaries of XL Group Ltd:

  • XL Bermuda Ltd
  • CatlinIndemnity Company
  • Catlin Insurance Company (UK) Ltd.
  • Catlin Insurance Company Ltd.
  • Catlin Insurance Company, Inc.
  • Catlin Re Switzerland Ltd
  • Catlin Specialty Insurance Company
  • Greenwich Insurance Company
  • Indian Harbor Insurance Company
  • XL Insurance America, Inc.
  • XL Insurance Company SE
  • XL Insurance Company of New York, Inc.
  • XL Insurance Switzerland Ltd
  • XL Re Europe SE
  • XL Reinsurance America Inc.
  • XL Seguros México, S.A. de C.V.
  • XL Select Insurance Company
  • XL Specialty Insurance Company



The following Long-Term IRs have been placed under review with developing implications:

XLIT Ltd.


--"bbb+" on $300 million 2.30% senior unsecured notes, due 2018

--"bbb+" on $400 million 5.75% senior unsecured notes, due 2021

--"bbb+" on $350 million 6.375% senior unsecured notes, due 2024

--"bbb+" on $325 million 6.25% senior unsecured notes, due 2027

--"bbb+" on $300 million 5.25% senior unsecured notes, due 2043

--"bbb" on $500 million 4.45% subordinated notes, due 2025

--"bbb" on $500 million 5.5% subordinated notes, due 2045

--"bbb-" on $350 million Series D non-cumulative preferred stock

--"bbb-" on $1,000 million Series E non-cumulative preferred securities, redeemable 2017

The following indicative Long-Term IRs have been placed under review with developing implications on shelf securities:

XLIT Ltd.

--"bbb+" on senior unsecured debt

--"bbb" on subordinated debt

--"bbb-" on preferred stock

The following Long-Term IR has been placed under review with developing implications for the following securities of Catlin Insurance Company Ltd.-

--"bbb+" on $600 million non-cumulative preferred shares

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.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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