Latest news with #Long-TermIssuerCredit
Business Wire
31-07-2025
- Business
- Business Wire
AM Best Affirms Credit Ratings of Jordan Insurance Company Plc.
LONDON--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of 'bb+' (Fair) of Jordan Insurance Company Plc. (JIC) (Jordan). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect JIC's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and marginal enterprise risk management (ERM). JIC's balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level as at year-end 2024, as measured by Best's Capital Adequacy Ratio (BCAR). The company's BCAR scores have improved in recent years as a result of measures taken by management to increase risk-adjusted capitalisation, including the suspension of dividend payments and the divesture of certain capital-intensive investments. Nonetheless, a partially offsetting rating factor is JIC's significant holdings of illiquid equity and real estate asset classes, which have been a source of volatility to the company's total equity, and have negatively impacted its regulatory solvency capital ratio. The ratings also consider JIC's moderately high reinsurance dependence for large property and commercial risks, although the associated risks are partially mitigated by a stable reinsurance panel of good credit quality. JIC has a track record of adequate operating performance, evidenced by return-on-equity ratios of approximately 4% over the last five years (2020-2024). The company reported a net profit of JOD 2.3 million in 2024 (2023: JOD 1.8 million), primarily driven by the profitability of its life portfolio, while challenging market conditions in Jordan and the United Arab Emirates translated into a non-life net/net combined ratio of 100.8% (101.7% in 2023 - as calculated by AM Best). Overall operating results have been supported by modest investment income, which translated into an average net investment return of 2.2% over the past five years. However, volatility in fair value movements of investments recognised through other comprehensive income introduced volatility into JIC's total equity over the period. JIC has an established position in Jordan's insurance market, where the company consistently ranks second based on gross written premiums; however, this market remains relatively small by international standards. JIC's insurance services revenue is well-diversified across a range of life and non-life business lines in Jordan. Due to the heavy use of reinsurance on property and other commercial lines, the company's net insurance services revenue is concentrated in motor and medical, although to a lesser extent than its domestic peers. The assessment considers the geographic diversification provided by branch offices in the UAE and, to a lesser extent, Kuwait, together with the multi-year bancassurance agreements in place for the distribution of life insurance products, giving JIC a competitive edge over most of its domestic peers. While JIC demonstrates a sound framework for identifying and managing underwriting-related risks, AM Best considers that risk management capabilities are not commensurate with the company's risk profile in areas including investments and capital management. The company is expected to take further steps to reduce its exposure to these risks over the short to medium term. 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.
Business Wire
20-06-2025
- Business
- Business Wire
AM Best Downgrades Issuer Credit Rating of Safety Insurance Group, Inc. and Its Key Subsidiaries
OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has downgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to 'a' (Excellent) from 'a+' (Excellent) and affirmed the Financial Strength Rating of A (Excellent) of Safety Insurance Company, Safety Indemnity Insurance Company, Safety Property and Casualty Insurance Company and Safety Northeast Insurance Company. The outlook of the Long-Term ICRs has been revised to stable from negative while the outlook of the FSR is stable. Collectively, these companies are referred to as Safety Group. At the same time, AM Best has downgraded the Long-Term ICR to 'bbb' (Good) from 'bbb+' (Good) of Safety Insurance Group, Inc. (Delaware) [NASDAQ/GS: SAFT], the publicly traded parent of Safety. The outlook of the Long-Term ICR has been revised to stable from negative. All companies are domiciled in Boston, MA, except where specified. The Credit Ratings (ratings) reflect Safety'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 (ERM). The Long-Term ICR downgrades reflect a trend of deterioration in Safety Group's risk-adjusted capitalization position since year-end 2021, as measured by Best's Capital Adequacy Ratio (BCAR). This reduction is attributed to the group's absolute surplus level declining while net written premium, net reserves and Safety Group's probable maximum loss estimate have all increased since. Inflationary trends and rate increases have also had a significant impact. Ultimately, these factors have led to Safety Group's risk-adjusted capitalization position declining to the strong level following 1Q 2025, down from the strongest level at year-end YE 2021. Company management has indicated its strategic goal is to remain within the strong range. AM Best assesses Safety Group's operating performance as strong due to five-year average pretax and total returns on revenue and equity that compare favorably with AM Best's private passenger and homeowners' composite averages. The group's five-year average combined ratio remains below breakeven and outperforms the composites as well. AM Best assesses Safety Group's business profile as neutral due to its consistent position as a top five carrier in the personal auto, commercial auto and homeowners' market in Massachusetts with a modestly diverse product offering. AM Best also views Safety Group's ERM as appropriate, supported by its comprehensive risk management framework that is well-documented in its Own Risk Solvency Assessment report. 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
30-04-2025
- Business
- Yahoo
AM Best Revises Issuer Credit Rating Outlook to Negative for Members of NJM Insurance Group
OLDWICK, N.J., April 30, 2025--(BUSINESS WIRE)--AM Best has revised the outlook to negative from stable for the Long-Term Issuer Credit Ratings (Long-Term ICRs) and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term ICRs of "aa" (Superior) of New Jersey Manufacturers Insurance Company, New Jersey Re-Insurance Company, New Jersey Indemnity Insurance Company and New Jersey Casualty Insurance Company, collectively referred to as NJM Insurance Group (NJM). The outlook of the FSR is stable. All companies are domiciled in West Trenton, NJ. The Credit Ratings (ratings) reflect NJM's balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM). The revised Long-Term ICR outlook to negative reflects the continued volatility in the group's pre and post dividend operating performance. In an effort to diversify risk, both geographically and by product, beginning in 2022, the group made significant investments in advertising and commission structure. These efforts have fueled strong direct premium growth and a decrease in the company's underwriting expense ratio with economies of scale. However, over the last several years, these investments have also combined with an industrywide rise in loss costs from an increase in the frequency of weather events and economic inflation to produce consecutive years of underwriting losses, with the largest loss occurring in 2024. In 2024, uninsured/underinsured motorists further pressured results, as more drivers either dropped coverage or carried inadequate insurance due to affordability—adding 9 points to the loss ratio. NJM's continuation of annual dividend payments to its policyholders through this period has dampened overall policyholder surplus appreciation and added an average of 9.2 points to the combined ratio in the last five years. However, management views dividends as a key retention strategy. In response to economic and loss costs volatility, NJM has implemented rate increases and tightened underwriting standards. In the absence of improvement in both pre- and post-dividend operating performance, a downgrade of the Long-Term ICR is likely. NJM's balance sheet remains in the strongest assessment as it continues to generate surplus through investments, despite underwriting losses and dividend payments. A favorable business profile reflects its strong foothold in the New Jersey auto and workers' compensation marketplace. An appropriate ERM program is maintained through strong risk appetite and tolerance statements reviewed by senior management and the board of directors. NJM also follows ORSA compliance and adopts ORSA policies as part of its ERM program. 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 Josie Novak Financial Analyst +1 908 882 2207 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Joseph A. Burtone Director +1 908 882 1678 Al Slavin Senior Public Relations Specialist +1 908 882 2318
Barnama
24-04-2025
- Business
- Barnama
AM Best Upgrades Issuer Credit Rating Of Shinkong Insurance Company Limited
HONG KONG, April 24 (Bernama) -- AM Best has upgraded 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 Shinkong Insurance Company Limited (Shinkong Insurance) (Taiwan). The outlook of the Long-Term ICR has been revised to stable from positive, whilst the outlook of the FSR is stable. The Credit Ratings (ratings) reflect Shinkong Insurance's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
Yahoo
27-02-2025
- Business
- Yahoo
AM Best Affirms Credit Ratings of Fianzas Avanza S.A de C.V.
MEXICO CITY, February 27, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B++ (Good), the Long-Term Issuer Credit Rating of "bbb" (Good) and the Mexico National Scale Rating of " (Superior) of Fianzas Avanza S.A de C.V. (Fianzas Avanza) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Fianzas Avanza'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 ratings of Fianzas Avanza also reflect its strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), adequate reinsurance program and liquid investment strategy. Partially offsetting these positive rating factors are Fianzas Avanza's historic volatile performance, which has stabilized by the change in its strategy, the intense competition in Mexico's surety bond segment and the challenging economic environment. The company is Mexico-domiciled and began operations in 2017, initially underwriting fidelity. Since 2022, Fianzas Avanza's business portfolio has increased in administrative surety, which is consistent with other market participants. Based on gross premiums written, the company has a small share of Mexico's surety market. In addition, due to Fianzas Avanza's monoline nature, its business profile is considered limited. Fianzas Avanza's risk-adjusted capitalization stands at the strongest level and has been partially sustained through capital injections in the past. The company's overall profitability was historically driven by financial products, contained claims and reinsurance commissions, which offset its high operating expense structure. However, the company increased its risk retention away from fronting products and is supported by an established sales department that bolstered growth, as well as an enhanced reinsurance structure placed with highly rated counterparties. As a result, Fianzas Avanza's underwriting performance has been reflecting premiums sufficiency since 2023. Additionally, Fianzas Avanza posted a net income of MXN 36 million in 2024. Looking forward, AM Best expects the company to sustain this operating performance trend supported by prudent growth rate and well contained surety exposures. Although unlikely within the short term, positive rating actions could occur if Fianzas Avanza is able to maintain its current improving trend in profitability and as a consequence further strengthens its capital base. Negative rating actions could occur if the company's underwriting performance deteriorates substantially or if there is a significant increase in business risk, due to a high concentration in the construction sector or uncertainty with regard to the government's spending on infrastructure, which could impact the growth of the surety market. 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 Salvador Smith, CQF Associate Director, Analytics +52 55 9085 7506 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Alfonso Novelo Senior Director, Analytics +52 55 9085 7501 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Sign in to access your portfolio
