AM Best Upgrades Credit Ratings of MS Amlin AG
26 April 2024 - 4:00PM
Business Wire
AM Best has upgraded the Financial Strength Rating to A+
(Superior) from A (Excellent) and the Long-Term Issuer Credit
Rating to “aa-” (Superior) from “a” (Excellent) of MS Amlin AG (MS
Reinsurance) (Switzerland). The outlook of these Credit Ratings
(ratings) is stable.
The ratings reflect MS Reinsurance’s balance sheet strength,
which AM Best assesses as very strong, as well as its adequate
operating performance, neutral business profile and appropriate
enterprise risk management. In addition, MS Reinsurance’s ratings
benefit from rating enhancement, in the form of lift, due to
support provided by its ultimate parent, MS&AD Insurance Group
Holdings, Inc. (MS&AD).
The rating upgrades reflect the additional explicit support that
MS Reinsurance receives from Mitsui Sumitomo Insurance Company,
Limited (MSI), in the form of a parental guarantee that was enacted
recently. MS Reinsurance is a direct subsidiary of MSI, which
itself is a core subsidiary of MS&AD.
MS Reinsurance’s balance sheet strength is underpinned by its
very strong risk-adjusted capitalisation, as measured by Best’s
Capital Adequacy Ratio (BCAR), in 2022 and 2023. BCAR scores
declined in recent years as a result of operating losses and strong
premium growth but are expected to recover moderately and remain at
least at the very strong level.
Following the appointment of new management from 2020, a series
of remedial measures have been taken to improve underwriting
performance and lower volatility of MS Reinsurance’s portfolio.
Strategic initiatives include reducing catastrophe exposure and
exiting underperforming accounts. The results of these measures,
combined with hard market conditions, became visible in 2023, when
the company achieved a combined ratio of 96% (as calculated by AM
Best, based on Swiss Code of Obligations figures) or approximately
90% under IFRS. Prospectively, MS Reinsurance is expected to report
profitable and less volatile underwriting results.
MS Reinsurance is an international reinsurance company with key
operating hubs in Zurich, Bermuda and the United States. The
company is well-diversified by both line of business and
geography.
This press release relates to Credit Ratings that have been
published on AM 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 AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Guide to Best’s
Credit Ratings. For information on the proper use of Best’s Credit
Ratings, Best’s Performance Assessments, Best’s Preliminary Credit
Assessments and AM Best press releases, please view Guide to Proper
Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specialising in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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Romeo Berti Senior Financial Analyst +44 20
7397 0267 romeo.berti@ambest.com
Tim Prince Director, Analytics +44 20 7397
0320 timothy.prince@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com