AM Best puts Lombard companies under ratings review

The credit ratings of two Bermudian-based companies have been placed under review with negative implications by AM Best.

This affects the financial strength ratings of A- (‘excellent’) and the long-term issuer credit ratings of a- (‘excellent’) of Lombard International Life Assurance Company and Lombard International Life, as well as Philadelphia-based Lombard International Life Assurance Company and Lombard International Life Assurance Company of New York.

AM Best said the credit ratings were placed under review with negative implications due to uncertainty regarding BroadRiver Asset Management’s intentions and capitalisation plans for the entities being acquired.

This follows Lombard International Group’s announcement it had entered into a definitive agreement to sell its US- and Bermudian-based businesses to BroadRiver Asset Management and its affiliated entities.

The ratings will remain under review until the transaction closes and regulatory approvals have been received, AM Best said.