The Hollard Insurance Company Credit Ratings affirmed -- AM Best

KUALA LUMPUR, Feb. 19 -- AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of ‘a-’ of The HollardInsurance Company Pty Ltd (HIC) Australia.

According to the global credit rating agency in a statement, the outlook of these ratings is stable.

The ratings reflect HIC’s balance sheet strength, which AM Best categorised as strong, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management (ERM). The company’s balance sheet strength assessment is underpinned by its unconsolidated risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which was at the very strong level in fiscal-year 2020 and is expected to remain at least at this level prospectively.

AM Best views HIC’s operating performance as adequate, with an average return-on-equity ratio of 4.6 per cent (fiscal-years 2016-2020) on an unconsolidated basis.

The agency assesses HIC’s business profile as neutral. The company is one of the top 10 non-life insurers in Australia based on gross written premiums, albeit occupying a modest market share of three per cent last year.

AM Best considers HIC’s ERM as appropriate given the size and complexity of the company’s operations.

More details on the ratings at www.ambest.com

-- BERNAMA