A.M. Best has affirmed the financial strength rating of A+ (Superior) and issuer credit rating of ‘aa’ of ACE Tempest Life Reinsurance (ATLRE) in Bermuda.
Partially offsetting these positive rating factors is the: “equity market volatility associated with minimum guarantees and annuitisation risk in ATLRE's reinsured products, particularly in a prolonged low interest rate environment; and the relatively modest scale of the company's life reinsurance operations,” said A.M.
ATLRE is currently not active in the life/annuity reinsurance space. A.M. also noted that adverse movements in the equity markets, coupled with the ongoing low interest rate environment, may continue to negatively impact the company's operating performance and capitalization levels due to potential reserve increases for its variable annuity reinsurance blocks.
