LONDON: Insurance sector rating agency AM Best has upgraded the Financial Strength Rating (FSR) to A+ (Superior) from A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “aa” from “a+” of Luxembourg  based iptiQ Life S.A., the ultimate parent of which is Swiss Re Ltd.

The outlook of these ratings is stable.

The rating upgrades reflect sustained operational integration between iptiQ and the Swiss Re group, as well as the explicit support that iptiQ receives from the group through reinsurance protection and regular capital injections.

iptiQ is important to the Swiss Re group, as it enables the group to pursue its strategy to grow direct life and health insurance business in Europe. The company is part of Swiss Re’s Life Capital business unit.

As iptiQ is now a member of Swiss Re’s lead rating unit, its ratings reflect Swiss Re’s balance sheet strength, which AM Best categorises as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management.

iptiQ was established in 2014 in Luxembourg and currently operates through several branches in Europe. It underwrites primary life and health retail policies, which are sold on a “white-label” basis through various partners using innovative digital distribution technology.

iptiQ has a limited market position currently and a concentrated portfolio in terms of geography and distribution partner, although AM Best expects diversification to improve in the medium term.

Edited by Nayyar Iqbal