KBRA Downgrades and Withdraws Ratings for Lombard International US and Bermuda Insurers
26 Jan 2024 | New York
KBRA downgrades the insurance financial strength ratings for Lombard International Life Assurance Company, Lombard International Life Assurance Company of New York, Lombard International Life Assurance Company (Bermuda) Ltd., Lombard International Life Ltd., and Lombard International Global Insurance Ltd. from A to A-, removes the Watch Developing status and assigns a Developing Outlook. KBRA subsequently withdraws all ratings at the companies' request. These entities were recently sold by Lombard International Group to BroadRiver Asset Management, L.P., and previously benefited from being part of the Lombard Group. The Developing Outlook reflects the uncertainty for these entities' future strategy, financial position, risk profile, and operational focus under new ownership.
Key Credit Considerations
The ratings reflect experienced management and a growing market that provides opportunity and a recurring fee based business model with modest balance sheet risk from operations. Balancing these strengths are execution risk, a limited market position and a business model dependent on the regulatory tax environment.
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