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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
27-06-2025
- Business
- Business Wire
KBRA Assigns Rating to Apex Star Reciprocal Exchange and Affirms Rating for Star Vantage Reciprocal Exchange
NEW YORK--(BUSINESS WIRE)--KBRA assigns a BBB Insurance Financial Strength Rating (IFSR) to Apex Star Reciprocal Exchange ("Apex Star") and affirms the BBB IFSR for Star Vantage Reciprocal Exchange ("Star Vantage"). The Outlook for both ratings is Stable. Star Vantage is a recently formed Mississippi domestic reciprocal property and casualty insurance which writes personal lines and commercial lines business on an admitted basis in Mississippi and on a surplus lines basis in other states. Apex Star is a new Florida domestic reciprocal property and casualty insurance company which also writes personal lines and commercial lines business, being on an admitted basis in Florida and a surplus lines basis in other states. Both companies are headquartered in Florida. Key Credit Considerations The ratings reflect both companies' low underwriting leverage and significant surplus relative to projected premiums written. The ratings also reflect a favorable market opportunity in the Southeast property market. The management team has solid insurance industry experience and writes highly customizable policies which it views as a competitive advantage. Additionally, as recently formed start-up insurers, Star Vantage and Apex Star have no legacy liabilities. Both companies have minimal start-up expenses due to an organizational structure whereby the Attorney-in-Fact (AIF) incurs the majority of start-up costs. Balancing these strengths is the company's high financial leverage due to 100% of Apex Star's surplus base and nearly 100% of Star Vantage's surplus base consisting of surplus notes. Furthermore, as property writers in the Southeast, both companies will have product and geographic concentration, natural catastrophe exposure due to hurricanes and high reinsurance dependence that, depending on availability and affordability, could materially impact results. Lastly, as de novo insurers, Star Vantage and Apex Star's future profitability is uncertain and dependent upon management executing its business plan. Rating Sensitivities A material favorable variance to business plans provided to KBRA including a faster reduction of financial leverage, a consistent trend in organic surplus growth, improved financial flexibility and access to capital and/or a favorable change in risk profile could result in positive rating action. A material unfavorable variance to business plan provided to KBRA, significant weather events that materially impact earnings and capital, an inability to obtain reinsurance on acceptable terms and pricing, causing an increase in loss exposure, a reduction in the company's ability to underwrite policies or a drag on earnings, an unfavorable change in risk profile and/or a departure of key members of the management team without suitable replacement could result in negative rating action. To access ratings and relevant documents, click here. Click here to view the report. Methodologies Disclosures Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above. A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1010125
Yahoo
13-05-2025
- Business
- Yahoo
Hospital Giant HCA Healthcare Joins Top Stocks Group; Prepping For Breakout?
HCA Healthcare shows rising price performance, earning an upgrade to its IBD Relative Strength Rating from 78 to 83.
