Bermuda's Evergreen Insurance credit ratings affirmed -- AM Best

KUALA LUMPUR, Nov 10 (Bernama) -- Global credit rating agency AM Best has affirmed the financial strength rating of “A” (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Bermuda’s Evergreen Insurance Company Ltd (EICL).

In a statement, AM Best said the outlook of these ratings is stable, reflecting EICL’s balance sheet strength, assessed as very strong by AM Best, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The company’s risk-adjusted capitalisation remained at the strongest level as measured by Best’s Capital Adequacy Ratio, and is underpinned by low net underwriting leverage, a highly conservative and liquid investment portfolio, and comprehensive reinsurance arrangements.

“EICL has demonstrated a track record of strong underwriting and operating performance, due to its group-related business.

“In view of its high severity, low-frequency risk profile that involves mainly marine and aviation business, the company ceded over half of its premiums to a panel of financially sound reinsurers and maintained a low retention ratio,” AM Best said.

The company’s net claims experience has been highly favourable over the past few years, while gross losses fluctuated due to a few major loss events in marine and aviation hulls.

In 2021, EICL faced investment headwinds from its cash and deposit-only investment portfolio.

Moving forward, AM Best expects that underwriting results, in particular for its marine business, will continue to be the main driver of its bottom-line results.

As a pure captive of Evergreen Group, EICL’s underwriting book primarily consists of marine, aviation and property risks related to the group’s operations.

-- BERNAMA