Aspen Insurance (NYSE:AHL)
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From Oct 2019 to Oct 2024
A.M. Best Co. has upgraded the financial strength rating to A
(Excellent) from A- (Excellent) and the issuer credit rating (ICR) to “a”
from “a-” of Aspen
Insurance Limited (AIL) (Bermuda). The outlook for both ratings is
stable.
The rating upgrades reflect a sustainable improvement in AIL’s
stand alone risk-adjusted capitalisation, which is likely to be
supported by strong retained earnings of above USD 150 million in both
2007 and 2008. In addition, Aspen has continued to balance the spread of
business between its two main operating entities, AIL and its sister
company, Aspen Insurance UK Limited (AIUK), through the use of
intra-group quota share arrangements. This even distribution of risk, AIL’s
excellent risk-adjusted capitalisation and excellent financial strength
of the consolidated group has led A.M. Best to harmonise the ratings of
both entities. (For details on AIUK and its ultimate parent, Aspen
Insurance Holdings Ltd. (Aspen) (Bermuda) [NYSE:
AHL], please refer to A.M. Best’s
press release dated December 7, 2007.)
A.M. Best believes that AIL is likely to continue to produce excellent
earnings in 2007, benefiting from profitable underwriting, strong rate
adequacy in the property catastrophe market (despite weakening) and
improved investment returns. A stable combined ratio in the region of
80% is likely, supported by another benign U.S. hurricane season. A.M.
Best believes AIL is likely to achieve strong, albeit somewhat weaker
performance in 2008 (subject to catastrophe experience), owing to the
softening rating environment across all AIL’s
main lines of business.
In A.M. Best’s opinion, AIL benefits from the
strength of the Aspen brand with a significant proportion of its income
emanating from intra-group cessions. Overall, AIL has a well diversified
book of property and casualty reinsurance (in particular, reinsurance of
AIUK) and specialty insurance and reinsurance business (including its
significant structured risk account).
For Best’s Ratings, an overview of the rating
process and rating methodologies, please visit www.ambest.com/ratings.
Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals and
health care system providers. For more information, visit www.ambest.com.