AM Best has downgraded the financial strength rating of AXA Re and its core subsidiaries to A- (excellent) from A (excellent).
It said the rating reflected AM Best's view that the improvement in AXA Re's earnings was unlikely to be sufficient to restore AXA Re's consolidated risk adjusted capitalisation.
On a consolidated basis, AXA Re remained highly exposed to reinsurance recoverables, leaving it exposed to increased credit and liquidity risks, said AM Best. It said it expected AXA Re's ongoing reorganisation to substantially reduce his ratio.
A positive rating factor was AXA Re's excellent business position in the reinsurance and industrial insurance markets, said AM Best.
