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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 17, 2017 02:24 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Associated Electric & Gas Insurance Services Limited (AEGIS) (Hamilton, Bermuda). The outlook of these Credit Ratings (ratings) remains stable.
The ratings reflect AEGIS’ excellent risk-adjusted capitalization and historically strong long-term financial performance. AEGIS’ investment strategy emphasizes diversification, and a relatively conservative approach to capital preservation and yield enhancement. These favorable rating factors are offset partially by the periodic unfavorable loss experience in certain lines of business over time. Management continues to focus on the company’s operating performance by improving its risk management strategies, including premium rate adjustments, continued refinement of its underwriting criteria and the judicious use of available reinsurance protection. AEGIS continues to demonstrate a strong market profile as evidenced by a high member retention ratio, an adaptive and highly responsive management team, and the continued expansion of programs within its corporate mission.
Although AEGIS is well-positioned at its current rating level, key rating drivers that may lead to positive movement in AEGIS’ ratings are sustained favorable underwriting performance and significant improvement in the company’s risk-adjusted capitalization.
Key ratings drivers that could impact the ratings negatively are increased underwriting volatility, significant investment losses, or an outsized catastrophe, in conjunction with a decline in risk-adjusted capitalization.
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.
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