The credit ratings of two Bermudian-based companies have been placed under review with negative implications by AM Best.

The ratings agency said it has placed under review with negative implications the financial strength ratings of A- (Excellent) and the long-term issuer credit ratings of “a-” (Excellent) of island-based Lombard International Life Assurance Company Ltd and Lombard International Life Ltd as well as Philadelphia-based Lombard International Life Assurance Company and Lombard International Life Assurance Company of New York.

These credit ratings were placed under review with negative implications following the announcement by Lombard International Group that it has entered into a definitive agreement to sell its US and Bermudian-based businesses to BroadRiver Asset Management and its affiliated entities.

AM Best said the negative implications are due to the uncertainty regarding BroadRiver Asset Management’s intentions and capitalisation plans for the entities being acquired.

It added that these ratings will remain under review until the transaction closes, all customary regulatory approvals are received and AM Best evaluates BroadRiver Asset Management’s role in these entities.