KBRA Affirms Rating of Alpha International Life Assurance Company (Guernsey) Ltd. and Changes the Outlook to Negative from Stable
13 Mar 2025 | New York
KBRA affirms the BBB- insurance financial strength rating (IFSR) on Alpha International Life Assurance Company (Guernsey) Ltd. (AILAC) and changes the Outlook from Stable to Negative.
The rating reflects AILAC’s sound risk-based capitalization, fee-based business model with modest balance sheet risk to contract holders, sound business strategy in a growing industry, and formal enterprise risk management (ERM) framework. Balancing these strengths are ERM not being fully embedded in operational decisions, failure of corporate governance with respect to adequate implementation of IFRS-17, execution risk with respect to rectifying IFRS-17 deficiencies and gaining regulatory approvals for products needed to reopen for new business, high dependance on favorable tax and regulatory environments to achieve its business plan and limited earnings diversification.
The change in Outlook from Stable to Negative reflects continued uncertainty surrounding current and approaching business challenges which, in KBRA’s opinion, presents significant headwind to achieving the company’s plan over the medium term and may erode AILAC’s financial position.
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