UK life company ratings downgraded - papers 16 August

THE FT today reports that US ratings agency AM Best has downgraded its financial strength ratings on 8 UK life companies because of the steep fall in the value of their equity assets in relation to liabilities. CGNU Life Assurance, Commercial Union Life Assurance, Norwich Union & Pensions have been downgraded from "A-" to "B++". Clerical Medical Investment Group and Scottish Widows have dropped from "A" to "A-". Perl Assurance and Royal London Mutual Insurance have gone from "B++" to "B+". Despite the downgrades, AM Best still believes the companies named are financially...