Latest news with #Adequacy
Business Wire
2 days ago
- Business
- Business Wire
AM Best Revises Issuer Credit Rating Outlooks to Negative for Oklahoma Farm Bureau Mutual Insurance Company and Its Subsidiary
BUSINESS WIRE)-- AM Best has revised the outlook to negative from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICRs of 'bbb+'(Good) for the members of the Oklahoma Farm Bureau Group: Oklahoma Farm Bureau Mutual Insurance Company and its wholly owned subsidiary, AgSecurity Insurance Company, collectively referred to as Oklahoma Farm Bureau. The outlook of the FSR is stable. All companies are domiciled in Oklahoma City, OK. The Credit Ratings (ratings) reflect Oklahoma Farm Bureau's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The revision of the Long-Term ICR outlooks to negative from stable reflects pressure on Oklahoma Farm Bureau's operating performance assessment given multiple years of underwriting losses, which have been impacted by frequent and severe weather, inflation and increased cost of reinsurance. Consequently, operating performance metrics are no longer closely aligned with other adequately assessed rated carriers. While management has and continues to address the deterioration in the group's operating performance by implementing various corrective actions, including rate increases, and reunderwriting initiatives, the overall effectiveness of these actions remains to be seen. Oklahoma Farm Bureau's balance sheet strength, which AM Best assesses as very strong, continues to be supported by its strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), a conservative investment portfolio, relatively low reserve leverage and historically favorable reserve development. The group's limited business profile assessment is indicative of the concentration risk as a single-state writer in the state of Oklahoma, which leaves results susceptible to weather and regulatory risk. In addition, the limited business profile assessment reflects its high property lines exposure. However, the group is the largest domestic carrier in the state of Oklahoma and controls the largest share of the farm and ranch market in the state. Oklahoma Farm Bureau's ERM remains appropriate, inclusive of a formal ERM program that is appropriate for the complexity of the group's overall risk profile, as well as a comprehensive reinsurance program, which provides top-level limit well into its tail exposure. This press release relates to Credit Ratings that have been published on AM 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 see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Yahoo
2 days ago
- Business
- Yahoo
AM Best Affirms Credit Ratings of Damaan Islamic Insurance Company ‘BEEMA' (Q.P.S.C.)
LONDON, May 29, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of Damaan Islamic Insurance Company 'BEEMA' (Q.P.S.C.) (Beema) (Qatar). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Beema's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. Beema is a takaful insurer and operates through a hybrid model, whereby the shareholders' fund charges the policyholders' fund (PHF) a Wakala fee based on gross written contributions (GWC) and a Mudarabah fee based on investment income. Beema's balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best assesses the company's risk-adjusted capitalisation on a combined basis, including its policyholders' and shareholders' funds, due to the strength of domestic regulation and requirement that the shareholders' fund would have to support the policyholders' fund were it to fall into a deficit. Other positive balance sheet strength factors include Beema's track record of internal capital generation through the retention of earnings and its ability to accumulate surpluses within the PHF whilst regularly distributing surplus back to policyholders. At year-end 2024, Beema reported capital and surplus of QAR 795.0 million (inclusive of QAR 237.4 million of accumulated policyholder surplus), an 11.1% increase as compared with year-end 2023. AM Best views Beema's operating performance as strong. The company has consistently reported robust technical performance, with a five-year (2020-2024) weighted average combined ratio of 80.5%. The combined ratio increased in 2024 to 93.4% (2023: 82.2%), driven predominantly by losses incurred on its international facultative reinsurance portfolio following the United Arab Emirates floods, which took place in the first half of the year. Despite the deterioration in non-life underwriting results in 2024, the company continues to demonstrate strong profitability in its core life & health segment. Earnings are well-balanced between shareholders' and policyholders' with both funds achieving consistent growth over the past 10 years. Beema holds a niche position within its domestic insurance market, as the second largest takaful player by GWC. However, in the context of the wider Qatari insurance market, Beema has a more modest profile, with a market share of approximately 4%. The company's concentration of contributions from a single market are partially mitigated by a diversified portfolio by line of business, both on a gross and net written contributions basis. Further diversification is achieved through a small, albeit growing, portfolio of inward international facultative reinsurance. This press release relates to Credit Ratings that have been published on AM 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 see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Romeo Berti Senior Financial Analyst +44 20 7397 0267 Ben Diaz-Clegg Associate Director, Analytics +44 20 7397 0293 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318
Business Wire
2 days ago
- Business
- Business Wire
AM Best Affirms Credit Ratings of Damaan Islamic Insurance Company ‘BEEMA' (Q.P.S.C.)
LONDON--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of 'a-' (Excellent) of Damaan Islamic Insurance Company 'BEEMA' (Q.P.S.C.) (Beema) (Qatar). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Beema's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. Beema is a takaful insurer and operates through a hybrid model, whereby the shareholders' fund charges the policyholders' fund (PHF) a Wakala fee based on gross written contributions (GWC) and a Mudarabah fee based on investment income. Beema's balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best assesses the company's risk-adjusted capitalisation on a combined basis, including its policyholders' and shareholders' funds, due to the strength of domestic regulation and requirement that the shareholders' fund would have to support the policyholders' fund were it to fall into a deficit. Other positive balance sheet strength factors include Beema's track record of internal capital generation through the retention of earnings and its ability to accumulate surpluses within the PHF whilst regularly distributing surplus back to policyholders. At year-end 2024, Beema reported capital and surplus of QAR 795.0 million (inclusive of QAR 237.4 million of accumulated policyholder surplus), an 11.1% increase as compared with year-end 2023. AM Best views Beema's operating performance as strong. The company has consistently reported robust technical performance, with a five-year (2020-2024) weighted average combined ratio of 80.5%. The combined ratio increased in 2024 to 93.4% (2023: 82.2%), driven predominantly by losses incurred on its international facultative reinsurance portfolio following the United Arab Emirates floods, which took place in the first half of the year. Despite the deterioration in non-life underwriting results in 2024, the company continues to demonstrate strong profitability in its core life & health segment. Earnings are well-balanced between shareholders' and policyholders' with both funds achieving consistent growth over the past 10 years. Beema holds a niche position within its domestic insurance market, as the second largest takaful player by GWC. However, in the context of the wider Qatari insurance market, Beema has a more modest profile, with a market share of approximately 4%. The company's concentration of contributions from a single market are partially mitigated by a diversified portfolio by line of business, both on a gross and net written contributions basis. Further diversification is achieved through a small, albeit growing, portfolio of inward international facultative reinsurance. This press release relates to Credit Ratings that have been published on AM 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 see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Yahoo
2 days ago
- Business
- Yahoo
AM Best Affirms Credit Ratings of Damaan Islamic Insurance Company ‘BEEMA' (Q.P.S.C.)
LONDON, May 29, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of Damaan Islamic Insurance Company 'BEEMA' (Q.P.S.C.) (Beema) (Qatar). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Beema's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. Beema is a takaful insurer and operates through a hybrid model, whereby the shareholders' fund charges the policyholders' fund (PHF) a Wakala fee based on gross written contributions (GWC) and a Mudarabah fee based on investment income. Beema's balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best assesses the company's risk-adjusted capitalisation on a combined basis, including its policyholders' and shareholders' funds, due to the strength of domestic regulation and requirement that the shareholders' fund would have to support the policyholders' fund were it to fall into a deficit. Other positive balance sheet strength factors include Beema's track record of internal capital generation through the retention of earnings and its ability to accumulate surpluses within the PHF whilst regularly distributing surplus back to policyholders. At year-end 2024, Beema reported capital and surplus of QAR 795.0 million (inclusive of QAR 237.4 million of accumulated policyholder surplus), an 11.1% increase as compared with year-end 2023. AM Best views Beema's operating performance as strong. The company has consistently reported robust technical performance, with a five-year (2020-2024) weighted average combined ratio of 80.5%. The combined ratio increased in 2024 to 93.4% (2023: 82.2%), driven predominantly by losses incurred on its international facultative reinsurance portfolio following the United Arab Emirates floods, which took place in the first half of the year. Despite the deterioration in non-life underwriting results in 2024, the company continues to demonstrate strong profitability in its core life & health segment. Earnings are well-balanced between shareholders' and policyholders' with both funds achieving consistent growth over the past 10 years. Beema holds a niche position within its domestic insurance market, as the second largest takaful player by GWC. However, in the context of the wider Qatari insurance market, Beema has a more modest profile, with a market share of approximately 4%. The company's concentration of contributions from a single market are partially mitigated by a diversified portfolio by line of business, both on a gross and net written contributions basis. Further diversification is achieved through a small, albeit growing, portfolio of inward international facultative reinsurance. This press release relates to Credit Ratings that have been published on AM 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 see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Romeo Berti Senior Financial Analyst +44 20 7397 0267 Ben Diaz-Clegg Associate Director, Analytics +44 20 7397 0293 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
AM Best Downgrades Credit Ratings of Southern States Insurance Exchange
OLDWICK, N.J., May 22, 2025--(BUSINESS WIRE)--AM Best has downgraded the Financial Strength Rating to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Rating to "a-" (Excellent) from "a" (Excellent) of Southern States Insurance Exchange (SSIE) (Richmond, VA). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect SSIE's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The rating downgrades reflect the change in the company's operating performance assessment to adequate from strong following continued volatility in underwriting and operating results in recent years, due primarily to a culmination of overall claims inflation, large losses, higher reinsurance costs and rate adequacy challenges given the aforementioned. The company also suffered higher-than-normal losses from weather-related events in 2023 and 2024 and posted adverse prior-year reserve development in 2024. Weaker-than-expected underwriting results from its workers' compensation line of business, added to the deterioration in SSIE's key profitability ratios since 2021. Beginning in 2023, several corrective actions were taken to restore profitability to pre-2023 levels via improved pricing, risk selection, enhanced customer safety and loss control initiatives. Actions taken by management in 2023 and 2024 are expected to stabilize underwriting and operating results over time. SSIE's balance sheet strength is supported by its strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), and conservative underwriting and loss reserve leverage measures. The business profile assessment reflects the company's niche market in agricultural industry and geographic concentration in mid-Atlantic and Southeast U.S. states. ERM remains appropriate and in line with its risk profile. This press release relates to Credit Ratings that have been published on AM 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 see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Fred EslamiAssociate Director+1 908 882 Daniel RyanSenior Director+1 908 882 Christopher SharkeyAssociate Director, Public Relations+1 908 882 Al SlavinSenior Public Relations Specialist+1 908 882 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
