KBRA Places Rating of Alpha International Life Assurance Company (Guernsey) on Watch Downgrade
9 Dec 2024 | New York
KBRA places on Watch Downgrade the BBB- insurance financial strength rating (IFSR) of Alpha International Life Assurance (Guernsey) Ltd. (AILAC).
The Watch Downgrade status reflects the limited information available to KBRA to adequately assess actual results for full year 2023 against the business plan previously provided by the company. KBRA has also been unable to assess 2024 year to date results, particularly with respect to the company's planned acquisition of new business after an extended period of the company being in run-off.
Moreover, in KBRA's opinion, the lack of an auditor's opinion on the 2023 financial statements of AILAC's ultimate parent, Alpha Growth plc (LSE: ALGW.L), reflects a potential breakdown in risk management at the group level. Although KBRA previously assessed AILAC's risk management framework as adequate for the company's current stage of development, a material failure in corporate governance would likely put downward pressure on AILAC's rating.
Resolution of the Watch Downgrade is expected within 90 days and will be contingent upon receipt and review of sufficient information on financial results, operations and business forecasts.
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