CONTACTS:
FOR IMMEDIATE RELEASE
LONDON - JUNE 15, 2017 12:44 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Samsung Fire & Marine Insurance Company of Europe, Limited (SFME) (United Kingdom). The outlook of these Credit Ratings (ratings) is stable.
The ratings of SFME reflect its excellent risk-adjusted capitalisation and strong operating performance. In addition, the ratings factor in the significant support it receives from its parent, Samsung Fire & Marine Insurance Co., Ltd. (SFMI), which provided SFME’s initial capital of GBP 10.6 million in 2011. SFMI provides substantial reinsurance protection to SFME on a facultative basis.
As a small company writing large risks, SFME is highly dependent on reinsurance. Although the risks associated with this dependence are mitigated by the good credit quality of the company’s reinsurers, it is an offsetting factor for the ratings.
After a partial initial year and five full years of trading, SFME has built a track record of excellent operating performance, with a 5-year average combined ratio below 75%. Gross written premiums increased by 18% in 2016, partially reversing a 28% reduction in 2015, and in spite of a substantial increase in claims, the company reported a profit before tax of GBP 1.9 million.
Although diversification improved in 2016, the majority of SFME’s business was again generated from insuring Samsung group operations in Europe. In addition, SFME insured a small amount of third-party Korean risks within Europe and an increased amount of locally sourced business. A.M. Best expects portfolio diversification to continue over the coming years, as SFME continues to expand its external business. As a subsidiary of SFMI and part of the Samsung group, a South Korean conglomerate, SFME benefits from an excellent business profile within its target markets.
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 Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.