Bermuda's NEWGT Credit Ratings affirmed - AM Best

KUALA LUMPUR, Dec 17 -- Global credit rating agency, AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of ‘a-’ of NEWGT Reinsurance Company Ltd (NEWGT) Bermuda.

The outlook of these Credit Ratings (ratings) is stable.

According to a statement, the ratings reflect NEWGT’s balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. NEWGT’s strong balance sheet assessment is well-supported by its risk-adjusted capitalisation, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio. The assessment also reflects its modest capital base and conservative investment portfolio. Although the company has a moderate reliance on reinsurance, the associated risk is mitigated by its high quality and well-diversified reinsurance programme. NEWGT’s underwriting results for its general account have been consistently positive, with a five-year average net loss ratio of 67 per cent and a five-year average net combined ratio of 94 per cent.

Following the completion of its portfolio improvement this year and the closure of its run-off segregated account business in December last year, AM Best believes the company’s underwriting results will remain profitable and gradually improve over time by focusing on its existing and profitable business. NEWGT is a wholly owned subsidiary of Itochu Corporation, one of Japan’s largest general trading companies listed on the Tokyo Stock Exchange. For details, visit www.ambest.com.

-- BERNAMA