Free Submission Public Relations &
Deutsch English


A.M. Best Affirms Ratings of Ansvar Insurance Limited

Print article Print article
© Business Wire 2014
2014-03-14 16:30:03 -

A.M. Best has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Ansvar Insurance Limited (Ansvar) (Australia). The outlook for both ratings is stable.

The rating affirmations reflect Ansvar’s strong risk-adjusted capitalization and its expected improvement in profitability. A new reinsurance arrangement for its property portfolio is expected to remove its exposure to catastrophe claims volatility and help improve its expense ratio through commission income. Risks in its remediated underwriting portfolio have significantly better historical claims experience than risks that lapsed in 2013.

Offsetting rating factors include Ansvar’s significantly reduced revenue base following the remediation of its underwriting portfolio, its resultant reduced market share and comparatively high level of susceptibility to higher reinsurance costs in 2012

and 2013 following the natural catastrophe events in 2011. There is concentration risk in Ansvar’s new reinsurance arrangement for its property portfolio, as it is provided by only one single reinsurer. This concentration risk is mitigated through the arrangement being written on a rolling multi-year basis.

Rating upgrades are unlikely at present. The ratings could be downgraded if Ansvar’s risk-adjusted capitalization deteriorates significantly due to higher than budgeted shareholder returns. Significant below budget gross and net premium revenue levels could also result in negative rating actions due to possible pressure on the company’s expense ratio.

The methodology used in determining these interactive ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at : .. .

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This rating announcement has been issued by A.M. Best Asia-Pacific Limited, which is a subsidiary of A.M. Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit : .. .

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

" title="\"/>" target="_blank" rel="nofollow"> ..

A.M. Best CompanyChi-Yeung Lok, +852-2827-3414Financial
Analyst : orKen
Chow, +852-2827-3426Senior Financial Analyst : orRachelle
Morrow, +(1) 908-439-2200, ext. 5378Senior Manager, Public
Relations : orJim

Peavy, +(1) 908-439-2200, ext. 5644Assistant Vice
President, Public Relations :

Hossam Abdel-Kader
Phone: +43 1 9582319

Disclaimer: (c) 2014 Business Wire. All of the news releases contained herein are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire's members, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction, other than for an individual user's personal reference, is prohibited without prior written permission.
Latest News
Read the Latest News


Terms & Conditions | Privacy | About us | Contact