Latest news with #Long-TermIssuerCreditRating
Barnama
21-07-2025
- Business
- Barnama
AM Best Affirms Credit Ratings of DB Insurance Co., Ltd.
HONG KONG, July 21 (Bernama) -- AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of 'aa-' (Superior) of DB Insurance Co., Ltd. (DBI) (South Korea). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect DBI's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.
Business Wire
18-07-2025
- Business
- Business Wire
AM Best Downgrades Issuer Credit Rating of Cowen Reinsurance S.A.; Maintains Under Review With Negative Implications Status on Credit Ratings
AMSTERDAM--(BUSINESS WIRE)-- AM Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to 'bbb' (Good) from 'bbb+' (Good) and affirmed the Financial Strength Rating of B++ (Good) of Cowen Reinsurance S.A. (Cowen Re) (Luxembourg). In addition, AM Best has maintained the under review with negative implications status for these Credit Ratings (ratings). These ratings reflect Cowen Re's balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM). The Long-Term ICR downgrade reflects the poor track record of Cowen Re's operating performance. Since its start of operations in 2016, Cowen Re has reported cumulative technical losses, which have been largely offset by investment gains. Cowen Re's five-year weighted average combined ratio stood at 122.9% (as calculated by AM Best). Furthermore, during its ongoing sale process that started after its acquisition by Toronto-Dominion Bank (TD Bank) in March 2023, Cowen Re is only renewing existing programmes and is not underwriting any new business, putting the company under greater expense strain. Cowen Re's ratings were initially placed under review on June 15, 2023. This was due to the uncertainty regarding Cowen Re's future ownership, given that AM Best does not expect the company to form a part of TD Bank's long-term plans. Additionally, the negative implications status also reflects the uncertainty regarding the company's strategic plans and the negative trend on the company's business profile as Cowen Re is unable to underwrite new business. Although Cowen Re reported a pre-tax profit (before movements in equalisation reserves) of USD 9.95 million, mainly driven by investment income, technical performance remained under pressure, as reflected by a combined ratio of 118.4% at year-end 2024 (as calculated by AM Best). The resolution of TD Bank's plans for the company has taken longer than AM Best originally expected. The ratings will remain under review with negative implications until AM Best has gained certainty regarding the company's long-term ownership and business plans. 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
03-07-2025
- Business
- Business Wire
AM Best Affirms Credit Ratings of Berkley International Compañía de Garantías México S.A. de C.V.
MEXICO CITY--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior), the Long-Term Issuer Credit Rating (Long-Term ICR) of 'aa-' (Superior) and the Mexico National Scale Rating (NSR) of ' (Exceptional) of Berkley International Compañía de Garantías Mexico S.A. de C.V. (BICGM) (Mexico City, Mexico). The outlook of the Long-Term ICR is positive while the outlooks of the FSR and NSR are stable. BICGM is a member of W. R. Berkley Insurance Group (Berkley Group), which on a consolidated basis has a balance sheet strength that AM Best assesses at the strongest level, as well as strong operating performance, a favorable business profile and appropriate enterprise risk management (ERM). The positive outlook for the Long-Term ICR reflects the Berkley Group's favorable operating performance and balance sheet metrics. Berkley Group has grown its GAAP surplus organically over the most recent 10-year period. Additionally, Berkley Group has improved its financial leverage. These Credit Ratings (ratings) reflect BICGM's integration with its parent company, W. R. Berkley Corporation (W. R. Berkley), in terms of corporate goals, underwriting, ERM and capital commitments, as well as the substantial reinsurance support from its group through the Berkley Insurance Company (BIC). BICGM was formed in November 2016 and is one of W. R. Berkley's two Mexico subsidiaries. The company received regulatory approval to underwrite surety business in June 2017 and issued its first policy that same month. During 2023, BICGM also requested regulatory approval to underwrite guarantee insurance. With this new line of business, management decided to start 2024 under BICGM, which offers a mix of administrative products in the surety segment, and a lesser portion of credit and judicial products. The company expects to start offering guarantee insurance in 2026. BICGM is backed by a comprehensive reinsurance contract with BIC. BICGM's strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), is derived from its sound capital position, strengthened further by the comprehensive reinsurance contract with BIC, a growing capital base due to reinvestment of earnings and capital injection in 2023. Furthermore, AM Best recognizes W. R. Berkley's commitment to its subsidiaries in providing additional capital fungibility to the Mexico operation. BICGM has been able to grow its business volume during the past eight years. In 2023, BICGM presented significant premium growth, mainly driven by increased government construction activities, as well as the recent nearshoring phenomenon in the north of Mexico. During 2024, premium growth was lower than previous year, mainly caused by a slowdown of Mexico's economy and a contraction of the construction sector. The company takes advantage of the reinsurance support received from the Berkley Group, which has allowed BICGM to achieve premium sufficiency, and further strengthened its profitability through investment income. If positive rating actions are taken due to the ultimate parent's operating performance showing continued and sustained outperformance of the strong peer group, BICGM's ratings would mirror those actions. A positive rating action could also occur if the ultimate parent's balance sheet metrics continue to improve, underpinned by improvement in its financial leverage while maintaining organic surplus growth. Negative rating actions could occur to the Berkley Group's insurance operations if the financial position of the ultimate parent weakens, requiring either the withdrawal of capital from the various insurance companies, an increase in financial leverage, or a decline in interest coverage that is not supportive of the current ratings. BICGM's ratings would reflect any rating actions taken as a result of the aforementioned scenarios. 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
03-07-2025
- Business
- Business Wire
AM Best Affirms Credit Ratings of Berkley International Seguros México S.A.
MEXICO CITY--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior), the Long-Term Issuer Credit Rating (Long-Term ICR) of 'aa-' (Superior) and the Mexico National Scale Rating (NSR) of ' (Exceptional) of Berkley International Seguros México S.A. (BISM) (Mexico City, Mexico). The outlook of the Long-Term ICR is positive while the outlooks of the FSR and NSR are stable. BISM is a member of W. R. Berkley Insurance Group (Berkley Group), which on a consolidated basis has a balance sheet strength that AM Best assesses at the strongest level, as well as strong operating performance, a favorable business profile and appropriate enterprise risk management (ERM). The positive outlook for the Long-Term ICR reflects the Berkley Group's favorable operating performance and balance sheet metrics. Berkley Group has grown its GAAP surplus organically over the most recent 10-year period. Additionally, Berkley Group has improved its financial leverage. These Credit Ratings (ratings) reflect BISM's substantial reinsurance support from its group through the Berkley Insurance Company (BIC). Additionally, the ratings factor in BISM's integration with its parent company, W. R. Berkley Corporation (W. R. Berkley), in terms of underwriting, ERM and capital commitments. BISM was formed in November 2016 and is one of W. R. Berkley's two Mexico subsidiaries. The company received regulatory approval for operations in June 2017 and issued its first policy in July of that same year. BISM offers a diversified slate of property/casualty products, backed up by treaty and facultative reinsurance contracts with BIC. BISM's strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), is derived from its sound capital position, further strengthened by the 95/5 percent quota share and excess of loss contracts provided by BIC. Furthermore, AM Best recognizes W. R. Berkley's commitment to its subsidiaries through additional capital fungibility to the Mexico operation. BISM has been able to grow its business volume during the past eight years. Management and underwriting teams have successfully navigated changes in the market's economic dynamics in recent years. The company continues to take advantage of the reinsurance support received from the Berkley Group, which allowed BISM to generate positive bottom-line results in 2024, marking the fifth time since BISM began operations. This performance is also underpinned by premium sufficiency and further strengthened by investment income. If positive rating actions are taken due to the ultimate parent's operating performance showing continued and sustained outperformance of the strong peer group, BISM ratings would mirror those actions. A positive rating action could also occur if the ultimate parent's balance sheet metrics continue to improve, underpinned by improvement in its financial leverage while maintaining organic surplus growth. Negative rating actions could occur to the Berkley Group's insurance operations if the financial position of the ultimate parent weakens, requiring either the withdrawal of capital from the various insurance companies, an increase in financial leverage or a decline in interest coverage that is not supportive of the current ratings. BISM's ratings would reflect any rating actions taken as a result of the aforementioned scenarios. 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 Upgrades Issuer Credit Rating of Daily Underwriters of America
BUSINESS WIRE)-- 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 Daily Underwriters of America (DUOA) (Carlisle, PA). The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook of the FSR is stable. The Credit Ratings (ratings) reflect DUOA's balance sheet strength, which AM Best assesses as strongest, as well as its very strong operating performance, limited business profile and appropriate enterprise risk management. DUOA's underwriting results and overall operating performance metrics continue to outperform the industry and its peers by wide margins, despite the inherent challenges of operating as an insurer specializing in commercial transportation. The very strong operating performance reflects the company's adherence to stringent underwriting guidelines, driving organic surplus growth that strengthens risk-based capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). The balance sheet strength benefits from consistently favorable loss reserve development with minimal volatility despite the exposure of its lines to potential litigation and social inflation. The limited business profile reflects DUOA's mono-line underwriting in commercial auto liability with a concentrated source of business from a long-standing managing general agency relationship that has provided excellent selection for DUOA's business. The average agency tenure among DUOA's top five agencies is 20 years. The stable outlooks are based on AM Best's expectation that DUOA's balance sheet strength will be maintained at the strongest level and its operating performance will continue to support an assessment of very strong. Negative rating action could occur if the balance sheet strength assessment is impacted negatively by significant declines in surplus or if the company's risk-adjusted capitalization materially decreases. Positive rating action could occur in the medium term if the company's balance sheet strength continues to reflect the strongest level of risk-based capitalization with organic surplus growth, very low retention to surplus exposure, and favorable reserve development relative to similarly assessed peers. 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.
