S&P: Aviva on watch

Standard & Poor's said it assigned a rating of AA- to Aviva Re Ltd. and placed it on CreditWatch with negative implications.

According to S&P, Aviva Group has made changes to its legal structure and reviewed its internal reinsurance strategy. As a result, the group has decided to transfer internal reinsurance activity, in particular that for its European life business, from Aviva Re Europe to other group entities, including Aviva Re Bermuda, S&P said.

From Dec. 31, the reinsurance contracts currently within Aviva Re Europe will either be transferred to Aviva Re Bermuda or be recaptured by the ceding internal companies.

S&P said it therefore withdrew the rating on Aviva Re Europe and assigned a new rating to Aviva Re Bermuda. The agency said it considers Aviva Re Bermuda to be "core" under its group rating methodology. In line with all core operating entities of Aviva Group, Aviva Re Bermuda has been placed on CreditWatch with negative implications, the agency said.

© 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.