Sovereign Assurance Company Limited (Sovereign) has had its financial strength reaffirmed by the ratings agency AM Best.
The agency awarded Sovereign an A+ (Superior) rating for the 10th consecutive year.
At the same time, AM Best removed Sovereign’s ‘review with developing implications’ status − which it applied in anticipation of AIA Group’s purchase of Sovereign, which was completed in July 2018 − and also gave Sovereign a Long-Term Issuer Credit Rating of ‘aa-.’
AM Best assigned a stable outlook to these credit ratings.
“An insurer’s financial rating is a direct reflection of its ability to pay claims. Sovereign’s A+ rating, combined with the fact that AIA Group is one of the largest life insurers in the world, gives our customers the certainty they want that we will be able to honour our commitment to them,” says Linda Page, Sovereign’s Chief Financial Officer.
In the 12 months to 30 June 2018, Sovereign paid $388 million in claims.
In a media release announcing its decision, AM Best said that:
“The ratings reflect Sovereign’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management. In addition, Sovereign benefits from rating enhancement from AIA.”
Sovereign will begin operating under the AIA brand during 2019.
Founded in 1899, A.M. Best is considered one of the world’s most authoritative insurance ratings agencies.
For more details contact Craig Glover, Head of Corporate Affairs and External Communications, on 027 275 3405.