S&P acts on South African insurers

S&P said it took various actions on the insurers and reinsurers exposed to the South African market, as listed below:

• Old Mutual Life Assurance Co. (South Africa) Ltd.’s global scale rating was lowered to BB+, its national scale ratings were lowered to zaAA+/zaA-1+ and its subordinated deferrable debt was lowered to zaA;

• Liberty Group Ltd.’s national scale ratings were lowered to zaAA+/zaA-1+, its subordinated nondeferrable debt was lowered to zaAA- and its subordinated deferrable debt was lowered to zaA;

• African Reinsurance Corp. (South Africa) Ltd.’s A- global scale rating was placed on CreditWatch negative;

• AIG Life South Africa Ltd., AIG Life South Africa Ltd. and Allianz Global Corporate and Specialty South Africa Ltd.’s global scale ratings were lowered to BB+ and their national scale ratings were lowered to zaAA+.

• GIC Re South Africa Ltd.’s global scale rating was affirmed at BB+ and its national scale rating was affirmed at zaAA+;

• Santam Ltd.’s global scale rating was lowered to BB+, its national scale rating was lowered to zaAA+ and its subordinated deferrable debt was lowered to zaA;

• Sanlam Ltd. and Sanlam Capital Markets Pty. Ltd.’s national scale ratings were lowered to zaA and zaAA-/zaA-1+, respectively; and

• Sanlam Life Insurance Ltd.’s national scale rating was lowered to zaAA+ and its subordinated deferrable debt was lowered to zaA.

The agency said the actions follow the downgrade of South Africa, which has directly weakened the credit quality of the investments of those insurers that hold most of their assets in South Africa.

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