IAG suffers ratings downgrade
IAG’s financial ratings have taken a dive following the reduction in its insurance margin late last month to 6-8% from 9-11%.
Standard & Poor’s (S&P) has cut the ratings for IAG’s holding company from ‘AA-’ to ‘A+’ and its wholly owned insurers from ‘AA’ to ‘AA-’.
S&P had placed IAG on CreditWatch with negative implications following the insurer’s half-year results in late February, due to a combination of unusually large storm impacts, volatile investment markets, operational issues in IAG’s UK business and the soft cycle in its domestic business.
But IAG CFO George Venardos says the group’s balance sheet and capital position remain strong.
QBE, whose merger proposal has been repeatedly rejected by IAG, has retained an ‘A+’ rating for its core operating entities.
Standard & Poor’s (S&P) has cut the ratings for IAG’s holding company from ‘AA-’ to ‘A+’ and its wholly owned insurers from ‘AA’ to ‘AA-’.
S&P had placed IAG on CreditWatch with negative implications following the insurer’s half-year results in late February, due to a combination of unusually large storm impacts, volatile investment markets, operational issues in IAG’s UK business and the soft cycle in its domestic business.
But IAG CFO George Venardos says the group’s balance sheet and capital position remain strong.
QBE, whose merger proposal has been repeatedly rejected by IAG, has retained an ‘A+’ rating for its core operating entities.