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FOR IMMEDIATE RELEASE
LONDON - FEBRUARY 05, 2016 09:38 AM (EST)
A.M. Best has affirmed the financial strength rating of A++ (Superior) and the issuer credit rating of “aa+” of HSB Engineering Insurance Limited (HSBEIL) (United Kingdom). The outlook for both ratings remains stable.
The ratings of HSBEIL reflect its excellent risk-adjusted capitalisation, track record of strong underwriting performance and established business profile as a specialist insurer of engineering risks in the United Kingdom and Canada. The ratings also reflect HSBEIL’s strategic importance to its parent, The Hartford Steam Boiler Inspection and Insurance Company (HSBIIC), a member of The Hartford Steam Boiler Group (HSB), as its principal source of international diversification.
HSBEIL’s risk-adjusted capitalisation remains at an excellent level. The company has a track record of strong underwriting performance, evidenced by a five-year average combined ratio of 80% (2010 – 2014). Good technical performance has been maintained during the first nine months of 2015. HSBEIL reported an excellent pre-tax profit of GBP 27.3 million in 2014 (2013: GBP 14.0 million), which included unrealised gains from the company’s investments in government and corporate bonds.
The company has an established specialist business profile in the United Kingdom and Canada as an underwriter of niche engineering risks including equipment breakdown, property damage and business interruption insurance. HSBEIL’s Canadian business is written through its wholly owned subsidiary, The Boiler Inspection and Insurance Company of Canada. HSBEIL’s profile also benefits from its wholly owned subsidiary, HSB Engineering Insurance Services Limited, which provides engineering inspection services to HSBEIL’s clients.
This press release relates to rating(s) 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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.