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FOR IMMEDIATE RELEASE
LONDON - SEPTEMBER 28, 2016 11:03 AM (EDT)
A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of EC Insurance Company Limited (ECIC) (United Kingdom). ECIC is a wholly owned subsidiary of The Electrical Contractors’ Association (ECA). The outlook of these Credit Ratings (ratings) remains stable.
The ratings reflect ECIC’s excellent risk-adjusted capitalisation, good albeit volatile operating performance and niche specialist business profile.
ECIC’s risk-adjusted capitalisation remains at an excellent level, supported by a comprehensive reinsurance programme. ECIC’s risk-adjusted capitalisation was strengthened in 2015 by a capital injection of GBP 1.1 million from its immediate holding company, EC Insurance Holdings Limited.
ECIC has a generally good underwriting record, as demonstrated by a five-year average combined ratio of 91% (2011-2015). However, results have been volatile over this period, with combined ratios ranging between 15% and 130%. In 2015, the company reported a pre-tax profit of GBP 0.4 million (2014: GBP 4.1 million), reflecting a small underwriting loss and a lower investment return due to unrealised investment losses.
ECIC has a solid niche business profile, primarily providing insurance to electrical and mechanical building services contractors and other specialist construction professionals in the United Kingdom. The company benefits from its relationship with its ultimate parent, ECA, which provides access to a large membership base.
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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.