Understanding AXA XL AM Best Rating

AXA XL has an AM Best rating of A+ (Superior), which indicates that it has a strong ability to meet its ongoing insurance obligations. This rating is a testament to the company's financial stability and reliability.

The AM Best rating system assesses insurance companies based on their financial strength, operating performance, and business profile. AXA XL's A+ rating suggests that it has a strong balance sheet and a solid track record of underwriting profits.

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AM Best Ratings for AXA XL provide a clear picture of the company's financial strength and stability. AXA XL has received a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of “aa-” (Superior).

AXA XL's balance sheet strength is assessed as very strong, with adequate operating performance, a favorable business profile, and very strong enterprise risk management. This is reflected in the company's ability to maintain ample liquidity and a solid regulatory capital position.

A unique perspective: Xl Group

AXA XL's reorganization has streamlined its corporate structure, allowing for easier evaluation of its insurance and reinsurance business segments. The company's lead reinsurance company, AXA XL Re, serves a key strategic role within the broader AXA XL Group enterprise.

AXA XL's ratings have been affirmed with stable outlooks for XL Bermuda Ltd and its subsidiaries, including AXA Insurance Company, AXA XL Reinsurance Ltd, and others. The company's ratings reflect its balance sheet strength, operating performance, business profile, and enterprise risk management.

Here is a list of AXA XL's subsidiaries with affirmed ratings:

AXA XL's ratings reflect its financial flexibility, capital management tools, and brand recognition within the AXA Group. The company's commitment to enterprise risk management and prudent risk selection has also contributed to its stable ratings.

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AM Best has assigned a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of “aa-” to AXA XL Reinsurance Limited (AXA XL Re) in Bermuda.

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The ratings reflect AXA XL's consolidated balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile, and appropriate enterprise risk management.

AXA XL Re's ratings also factor in its strategic importance to AXA XL and its role as the lead reinsurance company in its corporate structure.

AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) of XL Bermuda Ltd (AXA XL) and its subsidiaries.

The ratings reflect AXA XL's balance sheet strength, which AM Best assesses as adequate, its adequate operating performance, favorable business profile, and very strong enterprise risk management.

Here are the subsidiaries that have been affirmed with stable outlooks:

A.M. Best has upgraded the FSR of AXA XL's Property/Casualty subsidiaries to A+ (Superior) from A (Excellent) and the Long-Term ICR to "aa-" from "a+" with a stable outlook.

S&P recently raised the FSR and Long-Term ICR ratings on AXA XL's core insurance and reinsurance companies to AA- from A+ and on the highly strategic subsidiaries to A+ from A, with a Stable outlook for all entities.

Both rating agencies pointed out that their rating actions reflect AXA XL's stronger balance sheet as a part of the AXA group and strategic alignment with AXA in enhancing the group's leading market position in the commercial global P&C insurance sector.

A.M. Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) of XL Bermuda Ltd (AXA XL) and its subsidiaries with a stable outlook.

AXA XL benefits from significant implicit and explicit support provided by its ultimate parent, AXA S.A, which has improved its financial flexibility and maintained ample liquidity and a solid regulatory capital position.

Here are the subsidiaries that had their ratings affirmed by A.M. Best:

A.M. Best assigned a debt rating of "bbb" to $500 million equity security units of XL Capital Ltd. This rating was placed under review with negative implications.

The equity security units were part of XL Capital Ltd's capital action plan to offset the recently announced $1.775 cash portion of the agreement with Security Capital Assurance Limited. Each equity security unit has a stated amount of $25 and will consist of a contract to purchase for $25 ordinary XL Capital Ltd shares on August 15, 2011, and a 2.5% ownership in a senior note of XL Capital Ltd, due August 15, 2021, with a principal amount of $1,000.

XL Capital Ltd issued $2.0 billion of ordinary shares as part of this agreement. The agreement with SCA commutes and terminates certain reinsurance and other agreements among the parties, causing certain guarantees by XL Insurance (Bermuda) Ltd to no longer have any force or effect.

A unique perspective: Oak Hill Capital Partners

The debt-to-capital ratio of XL Capital Ltd remains relatively elevated at 30% following the issuance of the equity security units. Fixed charge coverage is anticipated to be maintained in the mid-single digit range.

A.M. Best remains concerned with the prospective impact this issue may have had on XL Capital's market profile and the potential effect on the company's operations and competitive position.

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