Rating agency AM Best affirms the A- (Excellent) financial strength rating of Hamilton-based, XL Life, commending the firm’s capitalisation and its profitability in recent years, following past volatility.
AM Best also affirms XL Life’s a- issuer credit rating. The outlook for both ratings is stable.
However, the rating agency says that XL Life’s focus on run-off business—not now a major focus for the wider XL Group—and the continuing low interest rate environment will have negative implications for its future business.
AM Best says that in its current form XL Life is unlikely to improve its rating, but could face negative rating action if its capitalisation or performance falls below the rating agency’s expectations.
XL Life, AM Best, rating