The Standard Club Ireland DAC Rated 'A' As An Integral Part Of Standard Club Insurance Group; Outlook Stable

  • We are assigning our 'A' financial strength rating to The Standard Club Ireland DAC (Standard Ireland), a newly formed subsidiary of The Standard Club that will write its existing EU risks.
  • We equalize our ratings on Standard Ireland with those on its parent, to indicate its integral role in and importance to the parent's strategy, and their close integration.
  • The stable outlook on the Irish entity reflects that on the Standard Club.
LONDON (S&P Global Ratings) Feb. 11, 2019--S&P Global Ratings said today that 
it assigned its 'A' financial strength rating to The Standard Club Ireland DAC 
(Standard Ireland). The outlook is stable.

We view Standard Ireland as a subsidiary that is integral to its parent, The 
Standard Club (or the club). The club established its Irish subsidiary to 
write business in the EU following Brexit. 

The club currently writes its EU risks through its U.K. subsidiary; these will 
be transferred to the Irish subsidiary to circumvent any potential loss of 
passporting rights after March 29, 2019, when the U.K. is expected to leave 
the EU. 

We expect Standard Ireland to write about 40% of the club's total premiums. It 
is likely to be well-integrated with its parent and to share the same risk 
management and underwriting standards. We consider that the club is committed 
to providing capital and financial support to its subsidiary.


The stable outlook reflects our expectation that, over the next 12-24 months, 
Standard Ireland will remain highly integral to the club. We anticipate that 
the club will maintain capital and earnings at the 'AAA' level, as measured 
under our capital model and a commensurate operating performance (see "The 
Standard Club Europe Ltd.," published on June 25, 2018).


We could lower the ratings if we consider that Standard Ireland is no longer 
highly integral to the club's operations. We do not consider this a likely 
outcome.

We could also lower the ratings on Standard Ireland if the club's capital 
adequacy is no longer forecast to remain at the 'AAA' confidence level in our 
risk-based model.


We do not consider an upgrade likely over the 12-24 months rating horizon due 
to limited diversity in the club's sources of earnings and its scale compared 
with its higher-rated peers.
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