SINGAPORE, March 30 (Bernama) -- A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Australia's Ansvar Insurance Limited (Ansvar).
The outlook for both ratings was stable and reflected Ansvar's adequate
balance sheet strength and improved underwriting results, said a
statement issued today by A.M. Best in Singapore.
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 and 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.
-- BERNAMA
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 and 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.
-- BERNAMA
http://www.bernama.com/bernama/v8/newsindex.php?id=1122677
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