S&P: ACE, units on watch

Standard & Poor's said it placed its counterparty credit and financial strength ratings on ACE Ltd.'s active operating insurance companies on CreditWatch negative. At the same time, S&P placed its ratings on ACE, including the BBB+ counterparty credit rating, on CreditWatch negative.

In addition, S&P lowered its counterparty credit and financial strength ratings on Century Indemnity Co. to B+ from BB+ and placed these ratings on CreditWatch negative.

S&P said the ratings were placed on CreditWatch negative following ACE's announcement of a $298 million after-tax reserve charge and the uncertainty surrounding this event.

S&P said it has questioned whether the ultimate reserve requirement to fulfill policyholder obligations for Century Indemnity Co. and affiliates is sufficient even with the $298 million after-tax reserve charge.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.