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A.M. Best Downgrades Credit Ratings of ERGO Insurance Pte. Ltd

PR-Inside.com: 2018-08-10 19:56:01

A.M. Best Downgrades Credit Ratings of ERGO Insurance Pte. Ltd

A.M. Best
Faith Tan, +65 6303 5017
Financial Analyst
faith.tan@ambest.com
or
Chi-Yeung Lok, +65 6303 5018
Director, Analytics
chi-yeung.lok@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

A.M. Best has downgraded the Financial Strength Rating (FSR) to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “bbb+” from “a-” of ERGO Insurance Pte. Ltd. (ERGO Insurance) (Singapore). The outlook of the Long-Term ICR has been revised to negative from stable, while the FSR outlook remains stable.

The ratings reflect ERGO Insurance’s balance sheet strength, which A.M. Best categorizes as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.

The downgrade reflects a material decline in capital below projections provided to A.M. Best in January 2018 due to weaker than expected performance. As a result of its reduced capital size, the company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), could experience greater volatility from unexpected events.

The Long-Term ICR outlook revision to negative reflects A.M. Best’s concern with the execution risk related to the ERGO Group AG’s plan to reposition ERGO Insurance in Singapore.

The Long-Term ICR outlook could be revised to stable if the company demonstrates a trend of positive results. Negative rating actions may arise from further deterioration in the company’s capital due to weak operating performance. A reassessment of ERGO Insurance’ strategic role as a wholly owned subsidiary of the Munich Reinsurance Company could also result in negative rating actions.

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

This press release relates to Credit Ratings 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 a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Press Information


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


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