Latest news with #FinancialStrength
Yahoo
5 days ago
- Business
- Yahoo
AM Best Affirms Credit Ratings of Dhipaya Insurance Public Company Limited
SINGAPORE, July 25, 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 Dhipaya Insurance Public Company Limited (Dhipaya) (Thailand). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Dhipaya's balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. Dhipaya's balance sheet strength assessment is viewed as strong, underpinned by its risk-adjusted capitalisation, which is expected to remain at the strongest level over the medium term, as measured by Best's Capital Adequacy Ratio (BCAR). The company benefits from strong financial flexibility as part of Dhipaya Group Holdings Public Company Limited (Dhipaya Group), which is a listed insurance holding company with access to capital markets. The company has a moderate risk investment strategy, given its notable allocation to equities and mutual funds. In addition, the company has a high reliance on reinsurance, although this is mitigated partially by the typically high credit quality of its reinsurance counterparties. The balance sheet strength assessment also factors in a neutral holding company impact arising from its ultimate ownership by Dhipaya Group. Dhipaya's operating performance is assessed as strong, with a five-year average return-on-equity ratio of 19.4% and combined ratio of 86.0% (2020-2024). In 2024, the company's underwriting performance remained robust, supported by good loss experience in its miscellaneous and fire insurance, and favourable reinsurance commission income despite flood losses and higher claims experience in personal accident and health insurance. In addition, disciplined underwriting and pricing strategies are expected to support prospective performance. Dhipaya's investment income, which comprises interest and dividend income, continues to remain supportive of overall earnings. AM Best assesses Dhipaya's business profile as neutral. The company has a strong presence in Thailand's non-life market, ranking second with a market share of 11.2% in 2024, based on direct premium written. Dhipaya holds a dominant market position in several major segments, including fire insurance. The company's business profile also benefits from its strong shareholder support through business referrals and access to extensive countrywide distribution networks. Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication. 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 Sin Yee Chuah, CFA Senior Financial Analyst +65 6303 5022 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Chris Lim, FCII, CFA Associate Director, Analytics +65 6303 5018 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Sign in to access your portfolio
Business Wire
5 days ago
- Business
- Business Wire
AM Best Downgrades Credit Ratings of Construction Guarantee Cooperative
HONG KONG--(BUSINESS WIRE)--AM Best has downgraded the Financial Strength Rating to A (Excellent) from A+ (Superior) and the Long-Term Issuer Credit Rating to a+ (Excellent) from 'aa-' (Superior) of Construction Guarantee Cooperative (CG) (South Korea). The outlooks of these Credit Ratings (ratings) have been revised to stable from negative. The ratings reflect CG's balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management (ERM). The rating downgrades reflect the revision of AM Best's assessment of CG's operating performance to adequate from strong, following a deterioration in its underwriting profitability in recent years, which AM Best expects will remain pressured over the short to medium term. The company recorded two consecutive years of underwriting losses in 2023 and 2024, in addition to the first half of 2025. This was due to a material rise in guarantee claims payment and a sizeable provision of guarantee claims reserves from liquidity pressure on an increased number of its members amid a downturn in the domestic construction industry. In addition, CG's increased exposure to market risk since 2022 under its realigned investment strategy has been adding additional volatility to its profitability. Despite some mitigative measures by the company, its performance is likely to remain moderate given the ongoing uncertainties on the industry recovery and the general time lag between the construction industry cycle and performance of the guarantee business. CG's risk-adjusted capitalisation is expected to remain comfortably at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), underpinned by a large capital base of KRW 6.8 trillion (USD 4.6 billion) as of year-end 2024, extremely low underwriting leverage, favourable liquidity and a debt-free position. AM Best also expects that the company may receive financial support from the government in case of a significantly stressed scenario. Established under the Korea Construction Financial Cooperative Law, CG is a government-designated surety underwriter for general contractors and plays a key supporting role in implementing government policies related to the construction industry in South Korea. CG has the largest share of the construction surety segment and a strong membership base, which represents the majority of the general contractors in the country. The majority of project owners of CG's surety bonds are central and local governments, which adds stability to its overall business volume. Meanwhile, the company has been diversifying its business gradually to overseas surety business and construction-related insurance products over the past few years to alleviate its concentration risk within the domestic construction surety segment. Negative rating actions could occur if there is a significant deterioration in CG's balance sheet strength fundamentals. Positive rating actions could occur if the cooperative's operating performance demonstrates consistently strong and resilient results under various conditions of the overall economy and construction industry with mitigated investment volatility to support the bottom-line. Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication. 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.
Yahoo
6 days ago
- Business
- Yahoo
AM Best Downgrades Issuer Credit Rating of Tuscarora Wayne Insurance Company and Affiliate; Upgrades Credit Ratings of Lebanon Valley Insurance Company; Revises Outlooks to Positive of Illinois Casualty Company; Withdraws ICR of ICC Holdings, Inc.
OLDWICK, N.J., July 24, 2025--(BUSINESS WIRE)--AM Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to "a" (Excellent) from "a+" (Excellent) and affirmed the Financial Strength Rating (FSR) of A (Excellent) of Tuscarora Wayne Insurance Company and its affiliate, Keystone National Insurance Company. The outlook of the Long-Term ICR has been revised to stable from negative while the FSR is stable. Both companies are collectedly referred to as Tuscarora Wayne Companies and are domiciled in Wyalusing, PA. Concurrently, AM Best has upgraded the FSR to A- (Excellent) from B++ (Good) and the Long-Term ICR to "a-" (Excellent) from "bbb+" (Good) of Lebanon Valley Insurance Company (Lebanon Valley) (Wyalusing, PA). The outlook of these Credit Ratings (ratings) is positive. In addition, AM Best has revised the outlooks to positive from stable and affirmed the FSR of A- (Excellent) and the Long-Term ICR of "a-" (Excellent) of Illinois Casualty Company (ICC). AM Best also has revised the outlook to positive from stable affirmed the Long-Term ICR of "bbb-" (Good) of its intermediate parent, ICC Holdings, Inc. (ICCH). Lastly, AM Best has withdrawn the rating of ICCH as the company requested its withdrawal following ICCH's transition to a privately held entity from a publicly held company. Both companies are domiciled in Rock Island, IL. The ratings of Tuscarora Wayne Companies reflect the group's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. The downgrade of Tuscarora Wayne Companies' Long Term ICRs reflects operating performance metrics that more closely align with adequately assessed companies within the commercial property composite. The group's very strong balance sheet strength assessment continues to be supported by the strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), solid liquidity and generally consistent and favorable loss reserve development, partially offset by dividends to its parent, which has somewhat constrained surplus growth. The neutral business profile continues to focus on underserved commercial business exposures with moderate geographic diversification. AM Best considers Tuscarora Wayne Companies' ERM program to be appropriate for the group's risk profile and includes prudent reinsurance protection and comprehensive risk management. The ratings of Lebanon Valley reflect its balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate ERM. The ratings also reflect rating enhancement via the explicit and implicit support provided as an affiliate of Tuscarora Wayne Companies. The upgrade of Lebanon Valley's ratings reflects its consistent surplus growth, with gains in surplus reported in each of the past 10 years, conservative investment portfolio and low underwriting leverage metrics that compare favorably with the composite average. The strong balance sheet strength assessment is underpinned by the strongest levels of risk-adjusted capitalization, as measured by BCAR. The adequate operating performance reflects the consistent performance of the company with net income in each of the past 10 years, with some modest volatility as reflected in underwriting losses in 2021 and 2023. The limited business profile reflects the company's geographic concentration in Pennsylvania and focus on commercial property business. The company is part of the ERM program employed by Tuscarora Wayne Companies and is considered appropriate for the company's risk profile. The positive outlooks reflect the expected product and geographic diversification the company will achieve via the implementation of a pooling agreement with Tuscarora Wayne Companies and ICC. The agreement is expected to be implemented by Jan. 1, 2026. The ratings of ICC reflect its 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 revised outlooks to positive from stable for ICC also contemplate the expected benefits of the forthcoming pooling agreement with its affiliated insurance companies. The pooling agreement will provide greater product diversification through additional commercial multiperil classes and lines of business, such as homeowners' and farmowners' coverages, while also improving the geographic reach of the company. ICC's very strong balance sheet strength is characterized by the strongest level of risk-adjusted capitalization, as measured by BCAR, underwriting and liquidity ratios that are comparable with the composite averages and generally consistent surplus growth. While loss reserve development has been unfavorable in recent periods, influenced by social and economic inflation, the impact has been effectively absorbed without significant drain on the balance sheet. This is reflected by adequate operating performance, which has yielded positive pre-tax operating and net income in each of the past 5 years, despite loss reserve development. The ERM program is considered appropriate for the company's risk profile. On March 13, 2025, ICCH was acquired by Mutual Capital Group, Inc. (the ultimate parent of Tuscarora Wayne Companies and Lebanon Valley). ICCH remains a subsidiary under common management with Mutual Capital Group's other subsidiaries. The prospective pooling agreement between the three rating units is expected to enhance the overall business and geographic diversification. 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 Daniel Mangano Senior Financial Analyst +1 908 882 1907 Maurice Thomas Senior Financial Analyst +1 908 882 2392 Christopher Draghi Director +1 908 882 1749 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Sign in to access your portfolio
Yahoo
17-07-2025
- Business
- Yahoo
AM Best Assigns Issuer Credit Rating to Fontana Holdings L.P.; Affirms Credit Ratings of Member Companies
OLDWICK, N.J., July 17, 2025--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issuer Credit Rating (Long-Term ICR) of "bbb+" (Good) to Fontana Holdings L.P. The outlook assigned to this Credit Rating (rating) is stable. Concurrently, AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term ICRs of "a+" (Excellent) of Fontana Reinsurance U.S. Ltd. and Fontana Reinsurance Ltd., which are subsidiaries of Fontana Holdings L.P. The outlook of these ratings is stable. All companies are domiciled in Bermuda and collectively referred to as Fontana. The ratings reflect Fontana's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and very strong enterprise risk management (ERM). Fontana Holdings L.P. is a joint venture between RenaissanceRe Holdings Ltd. (RenaissanceRe) [NYSE:RNR] and various third-party capital partners. Both Fontana Reinsurance Ltd. and Fontana Reinsurance U.S. Ltd. are ultimately owned by Fontana Holdings L.P., and each company's rating considers its strategic importance to Fontana. Fontana is critical to RenaissanceRe's diversification, being the first joint venture focused on casualty and specialty risk. Fontana is managed solely by Renaissance Underwriting Managers, Ltd. (RUM) and is consolidated into RenaissanceRe's financial statements. Fontana started operations in April 2022 with USD 475 million in committed capital and has assumed a whole account quota share of RenaissanceRe's casualty and specialty book of business. Fontana's capital has been supported by its parent, which has raised capital successfully over the past years to support the growth of Fontana Reinsurance Ltd. and Fontana Reinsurance U.S. Ltd. The ratings of the Fontana entities continue to reflect the strength and depth of RenaissanceRe's management team and its leadership in ERM, as well as the benefits that should accrue to Fontana as a result of RenaissanceRe—through RUM—managing underwriting, pricing, risk selection, reserves, investments, claims, etc. AM Best notes that Fontana's operating performance and overall balance sheet strength have been maintained at levels consistent with expectations over its relatively short operating history. As the companies gain scale, AM Best expects that Fontana will generate underwriting profits and earnings to support the adequate operating performance, and that risk-adjusted capitalization will be maintained at levels to support the strong balance sheet assessment, broadly consistent with RenaissanceRe's long-term risk appetite for this entity. 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 Antonietta Iachetta Associate Director +1 908 882 1901 Gregory Dickerson Director +1 908 882 1737 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318
Business Wire
14-07-2025
- Business
- Business Wire
AM Best Upgrades and Withdraws Credit Ratings of Union Insurance Company P.J.S.C.
LONDON--(BUSINESS WIRE)-- AM Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to 'bbb' (Good) from 'bbb-' (Good) of Union Insurance Company P.J.S.C. (Union) (United Arab Emirates). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best's interactive rating process. The ratings reflect Union'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. The rating upgrades reflect the demonstrated improvements in Union's corporate governance, internal controls and risk management practices. The company's management has taken corrective actions in recent years to reduce balance sheet risk and improve regulatory solvency metrics. As at year-end 2024, the company continues to report a stable solvency coverage ratio of 143% (144% at year-end 2023), which remains in excess of 140% following the first three months of 2025. AM Best expects Union to manage its capital position prudently to maintain a comfortable buffer above regulatory solvency requirements. Union's very strong balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), at the strongest level in 2024 and is expected to remain at this level prospectively. The assessment also incorporates the company's reduced exposure to investment risk, following management's derisking of the equity and real estate portfolios since 2021, with proceeds reinvested largely in cash and deposits. A partially offsetting factor is Union's high dependence on reinsurance, albeit the associated elevated credit risk is managed through the use of a well-rated reinsurance panel. Union has a track record of adequate operating performance, generating profits in three of the past five years (2020-2024). Union reported a profit of AED 38.3 million (USD 10.4 million) in 2024, driven by positive underwriting and investment returns, with continued profits of AED 13.1 million following the first three months of 2025. AM Best expects greater stability in operating results following the derisking of the asset portfolio and continued focus on underwriting profitability. Union retains its position as a mid-tier composite insurer in the UAE market, where in 2024 it ranked 15 th, as measured by insurance revenue of the listed national insurance companies. Despite a well-balanced distribution network, insurance revenue is concentrated in the highly competitive UAE market, where the company originates the majority of its business. Union's top line contracted in 2024, the result of Union's exit from the Oman's life insurance market and its selective underwriting approach. The company has outlined several growth opportunities to compensate partially for lost revenue. 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.
