Press Release|Insurance

KBRA Affirms All Ratings and Maintains Negative Outlook on LIA Holdings Maintains Stable Outlook for Lombard International Assurance S.A. and Maintains Watch Developing on Non-European Entities

17 Nov 2023   |   New York


KBRA affirms the issuer and debt ratings of LIA Holdings Limited at BBB which remain on Negative Outlook. The insurance financial strength rating (IFSR) of Lombard International Assurance S.A. is affirmed at A and remains on a Stable Outlook. The A IFSRs of Lombard International Life Assurance Company, Lombard International Life Assurance Company of NY, Lombard International Life Assurance Company (Bermuda) Ltd., Lombard International Life Ltd., and Lombard International Global Insurance Ltd. remain on Watch Developing due to the pending sale of these entities to a third party.

The ratings reflect Lombard International’s recurring fee-based business model with modest balance sheet risk, resiliency in results supported by trends in assets under administration, strong market position and deep expertise in the growing global private-placement/unit-linked life and annuity markets, and long-standing distribution relationships. Lombard International’s mortality risk is managed through reinsurance relationships with highly creditworthy counterparties. Lombard International’s European operations generate the bulk of the organization’s results. Balancing these strengths is elevated holding company financial leverage, currently limited sources of liquidity at the holding company, the susceptibility of its business model to regulatory or tax changes in key markets, and uncertainty related to ongoing strategic transactions. Reserve additions and settlements for tax and litigation matters weighed on profits and created volatility in results in certain recent periods.

To access rating and relevant documents, click here.

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Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1002703

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