A.M. Best has upgraded Interglobal's financial strength rating to A- (Excellent) from B++ (Good) and issuer credit rating to "a-" from "bbb+" followings its recent acquisition by Aetna.
The ratings have been removed from under review with positive implications and assigned a stable outlook.
The removal of the under review status reflects the completion of the acquisition of InterGlobal by Aetna.
In December 2013, the ratings of InterGlobal were placed under review with positive implications, following the announcement of Aetna's intention to acquire the company.
On 23 April 2014, Aetna announced the completion of the acquisition, which was consummated by a transfer of shareholding of InterGlobal to Aetna through its Bermudian subsidiary, Aetna Global Benefits (Bermuda) Limited.
No other changes occurred, and the integration process is expected to start in the near term.
The upgrading of the ratings reflects the strength of capital and financial wherewithal of Aetna to support InterGlobal if necessary.
The acquisition of InterGlobal fits into Aetna's strategy to serve a growing expatriate business and explore other new lines and markets.
InterGlobal's risk-adjusted capitalisation is strong and has improved over the past two years, driven by retained profits and a capital injection in 2011.
InterGlobal's technical result improved significantly in 2013 to USD 2.3 million (2012: USD 0.8 million loss) following actions taken by management, which include price increases and non-renewal of large loss-making accounts.
InterGlobal's gross premium income increased slightly by 5% to USD 117 million in 2013, in line with expectations.