Today: July 24, 2017, 8:52 am
  
Business

A.M. Best Affirms Credit Ratings of Aetna Insurance Company Limited

PR-Inside.com: 2017-07-14 15:52:02

A.M. Best Affirms Credit Ratings of Aetna Insurance Company Limited

A.M. Best
Filippo Novella
Associate Financial Analyst
+44 20 7397 0304
filippo.novella@ambest.com
or
Tim Prince
Director, Analytics
+44 20 7397 0320
timothy.prince@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Aetna Insurance Company Limited (AIC) (United Kingdom), a subsidiary of Aetna Inc. (Aetna Group) (headquartered in Hartford, Connecticut, USA). The outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect AIC’s strong risk-adjusted capitalisation, niche business profile and volatile results over the past five years. Furthermore, the ratings consider the financial strength of Aetna Group and its ability to provide financial support to AIC should it become necessary.

AIC’s risk-adjusted capitalisation improved to an excellent level in 2016 as a result of a capital injection of USD 65.5 million. The issue of new share capital followed the transfer of business to AIC from other Aetna subsidiaries, which resulted in increased capital requirements for the company. Risk-adjusted capitalisation is likely to deteriorate as the company grows; however, A.M. Best expects it to remain at a strong level. An offsetting rating factor is the company’s historically volatile underwriting performance. AIC’s five-year average combined ratio based on earned premiums was 101% (2012-2016) and ranged between 96% and 108%. Several one-off factors have negatively impacted AIC’s recent underwriting results; for example, the adoption of the Aetna group’s more conservative reserving practices. A.M. Best believes that the company’s focus on underwriting profitability and more stable growth over the coming two years are likely to support a less volatile and improved underwriting result.

The company’s business profile has benefited from its association with Aetna Group, since its acquisition in 2014. Additionally, A.M. Best believes that AIC benefits from the well-established operational and risk management frameworks of its parent company and the group’s ability to provide financial support should it become necessary.

This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper [..].

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Press Information


Published by
Hossam Abdel-Kader
+43 1 9582319
e-mail
www.pr-inside.com/



# 733 Words
Related Articles
More From The Author
A.M. Best Affirms Credit Ratings of Halyk-Life, [..]
A.M. Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of [..]
trivago N.V.'s Second Quarter 2017 Earnings Release [..]
trivago N.V. / trivago N.V.'s Second Quarter 2017 Earnings Release Scheduled for August 4, 2017 . Processed and transmitted by [..]
Wedge Holdings: Regarding the Signing of Sales [..]
We, Wedge Holdings co.,ltd. (JASDAQ: 2388) (Tokyo, JAPAN,/ Mr.Tatsuya Konoshita, Representative managing director and CEO), are [..]
Nordson DIMA Launches New Website to Promote [..]
Nordson DIMA : The new hot bar website reflects Nordson DIMA’s growing presence in the global market for hot bar [..]
Kesko's sales in comparable terms grew in [..]
KESKO PRESS RELEASE 14.07.2017 AT 09.00 1(3)   Kesko's sales in comparable terms grew in June   Kesko Group's sales [..]
 
More From Business
Sendrakhi.com offers a Wonderful Platform to Send [..]
New Delhi, Thursday, July, 24, 2017: Raksha Bandhan is a festival that holds a special place in the heart of [..]
Patioland Promotes Cost Effective Awnings for Homes
Patioland, Australia’s experts in custom awnings, pergolas and carports, is promoting beautiful and durable home awnings this [..]
My Cubby – Encouraging Play Experiences to [..]
Experts have emphasised the importance of play in the lives of children. My Cubby, Australia’s cubby house experts, provides plenty [..]
Healing House Announces Winter Specials with Deep [..]
Healing House, the premium wellness destination for Thai Massage and Day Spa, has announced their Winter Special for 2017. Thai [..]
Firemane Present Verifone’s New Engage Range
Firemane are the global suppliers of credit card machines, and have equipment from all of the established POS brands, as [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.