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FOR IMMEDIATE RELEASE
LONDON - JUNE 21, 2018 12:35 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of SIAT-Società Italiana Assicurazioni e Riassicurazioni p.A. (SIAT) (Italy), a subsidiary of UnipolSai Assicurazioni S.p.A. (UnipolSai). The outlook of these Credit Ratings (ratings) remains stable.
The ratings reflect SIAT’s balance sheet strength, which A.M. Best categorises as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
SIAT’s balance sheet strength assessment is underpinned by the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). Capital adequacy is expected to benefit from a moderate level of internal capital generation in prospective years. The company maintains a good liquidity profile, with liquid investments accounting for approximately 130% of its year-end 2017 net technical liabilities. Partially offsetting factors include the company’s investment concentration in Italian government bonds and dependence on reinsurance to write large-value risks.
SIAT has a long track record of underwriting profits, with combined ratios of below 90% reported in each of the past three years (2015-2017). In 2017, the company’s pre-tax profits decreased by 18% from the prior year to EUR 7.2 million, due to a slight deterioration in its claims experience and lower investment earnings. Going forward, A.M. Best expects SIAT to achieve a return on equity in the high-single digits.
SIAT has an established reputation as a niche insurer in the marine hull and cargo segments, where it ranks among the leading players in Italy. In addition, the company’s business profile is strengthened by its association with UnipolSai, a large Italian insurer. SIAT benefits from a developed ERM framework, with the risk function being centralised at the group level.
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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