Standard & Poor’s (S&P) has raised its long-term local-currency financial strength rating on IAG’s Malaysian captive reinsurer IAG Re Labuan.

The rating moves to A+ from AA- with a stable outlook, following changes in the agency’s methodology.

“We continue to view the insurer as a core operating entity of IAG for our revised criteria for group rating methodology,” S&P credit analyst Caroline Strahan said.

The move equalises IAG Re Labuan with IAG’s rating rather than Malaysia’s local-currency sovereign rating of A, an unusual move that reflects IAG’s support.