Best’s News & Research Service - September 14, 2018 02:12 PM (EDT)
A.M. Best Affirms Credit Ratings of Associated Electric & Gas Insurance Services Limited
- September 14, 2018 02:12 PM (EDT)
Oldwick //BestWire// - 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’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
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 prudent use of available reinsurance protection. AEGIS continues to demonstrate a significant 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 the current rating level, key rating drivers that may lead to positive actions on AEGIS’ ratings are sustained favorable underwriting and the company maintaining its risk-adjusted capitalization at the strongest level.
Key rating drivers that could negatively affect the ratings are increased underwriting volatility, significant investment losses or outsized catastrophic events, in conjunction with a decline in the 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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