SINGAPORE--(BUSINESS WIRE)--Mar 27, 2015--A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Ansvar Insurance Limited (Ansvar) (Australia). The outlook for both ratings is stable.
The rating affirmations reflect Ansvar's adequate balance sheet strength and improved underwriting results.
Ansvar is currently maintaining a capital adequacy ratio that is significantly above its local regulatory requirement. In addition, the company's risk-based capitalization, as evaluated by Best's Capital Adequacy Ratio, is supported by its disciplined approach to underwriting, favorable reinsurance arrangement and conservative investments.
In response to the poor underwriting results in recent years, Ansvar took the decision to exit its unprofitable personal lines business and implement various measures to remediate the performance of its commercial book, which include enhancing its underwriting control, restructuring its reinsurance program and striving to meet its pricing target by line of business. Mainly reflective of these initiatives, the company has reported a more stable claims experience and improved underwriting results for the 12-month period that ended Dec. 31, 2014.
Offsetting rating factors include Ansvar's significantly reduced revenue base following the remediation of its underwriting portfolio.
Positive rating actions are unlikely in the short term. The ratings could be downgraded if Ansvar fails to meet its profitability targets due to competitive pressures, or there is a material deviation from the budgeted loss and expense ratios.
The methodology used in determining these interactive ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
?E Catastrophe Analysis in A.M. Best Ratings
?E Rating Members of Insurance Groups
?E Risk Management and the Rating Process for Insurance Companies
?E Understanding Universal BCAR
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's .
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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KEYWORD: ASIA PACIFIC NORTH AMERICA SINGAPORE
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE
SOURCE: A.M. Best Company
Copyright Business Wire 2015
PUB: 03/27/2015 12:41 PM/DISC: 03/27/2015 12:41 PM