13 November 2017
Reporter: Lorella Fava

Revised outlook for SBLI

A.M. Best has revised The Savings Bank Mutual Life Insurance Company of Massachusetts’ (SBLI) long-term issuer credit rating outlook from stable to negative.

The rating agency also affirmed the financial strength rating of “A (Excellent)” and the long-term issuer credit rating of “a+” of SBLI.

The revised outlook reflects the company’s risk associated with its moderate quality of capital and limited financial flexibility, as shown through the reliance on reinsurance captive solutions to support the company’s growth. Partially offsetting the quality of capital is SBLI’s overall balance sheet, which A.M. Best categorised as “strongest”. This is supported by a solid level of risk-based capital, a good reserve profile, and adequate liquidity measures. Further, in the Q3 2017, the company bought back the full outstanding external private shareholder stakes, which represented 37.5 percent of the company’s ownership. This was financed through the issuance of a $57 million in surplus note due in 2047. A.M. Best suggested that while the servicing of the surplus note will negatively impact capital in the short run, relative to prior shareholder dividends paid, the cleaner ownership structure, and capping and stabilising future servicing costs to providers of capital are “potential long-run positives”.

More news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
XL Catlin appoints new captive director in Asia
17 November 2017 | Hong Kong | Reporter: Becky Butcher
XL Catlin has hired Shiwei Jin as its global programme and captive regional director in Asia
Advantage Insurance hires duo
17 November 2017 | San Juan | Reporter: Becky Butcher
Advantage Insurance has appointed Colin Devine to its board of directors
‘Exciting developments’ in South Carolina’s captive industry
17 November 2017 | Charleston | Reporter: Becky Butcher
Jay Branum of the South Carolina Department of Insurance has revealed the state has “very positive and exciting developments” for its captive insurance industry
‘Explosive growth’ for Tennessee’s captive market
17 November 2017 | Nasville | Reporter: Lorella Fava
After rewriting its captive statute back in 2011, the captive insurance market in Tennessee has seen “explosive growth”, according to the state’s insurance commissioner Julie Mix McPeak
L&C appoints Kate Miller as head of institutions
16 November 2017 | London | Reporter: Lorella Fava
London & Capital (L&C) has appointed Kate Miller as head of institutions
KBRA Europe registered by ESMA
15 November 2017 | Dublin | Reporter: Becky Butcher
Kroll Bond Rating Agency Europe has officially been registered as a credit rating agency by the European Securities and Markets Authority (ESMA), effective 13 November
Captive insurance scholarships awarded in Bahamas
14 November 2017 | The Bahamas | Reporter: Lorella Fava
The Bahamas Financial Services Board (BFSB) and the Insurance Commission of The Bahamas (ICB) has selected two recipients for the Associates in Captive Insurance designation scholarships