Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 30 n° 340

Posts Tagged ‘credit rating’

A.M. Best Upgrades Issuer Credit Rating of The Union Labor Life Insurance Company

Posted by fidest press agency su venerdì, 6 luglio 2018

A.M. Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of The Union Labor Life Insurance Company (ULL). The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook of the FSR remains stable. ULL is a subsidiary of Ullico Inc., a holding company that offers insurance and financial products and services, with its common stock held by various labor organizations and their related benefit funds. Both companies are headquartered in the District of Columbia. The Credit Ratings (ratings) reflect ULL’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. ULL’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is considered to be at the strongest level, supported by its absolute growth of capital and surplus over the past few years. Additionally, the company maintains a relatively conservative investment allocation, though it produces yields that are somewhat lower than the industry average. While counterparty risk is considered to be minimal, A.M. Best notes that the company has increased its reliance on the cession of premiums over the past few years.ULL has reported favorable trends in profitability over the past few years, with its core medical stop loss business producing good metrics. Additionally, the company benefits from fee income generated by its J for Jobs and WorkAmerica separate accounts, which continue to report increasing assets under management and favorable yields relative to benchmarks. ULL continues to be a niche carrier in the Taft Hartley market, providing solutions that are valuable and innovative to its target union consumers. While ULL’s core business lines have been performing well, medical stop loss and the fees generated by a separate account have historically been the primarily drivers of profitability and growth, exposing the company to a moderate level of concentration risk. A.M. Best believes that the company could be challenged to report a sustainable level of profitable stop-loss premium growth going forward due to the highly competitive market for that product.

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A.M. Best Affirms Credit Ratings of The West of England Ship Owners Mutual Insurance Association

Posted by fidest press agency su sabato, 13 gennaio 2018

londonLondon. A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of The West of England Ship Owners Mutual Insurance Association (WoE or the Club) (Luxembourg). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect WoE’s balance sheet strength, which A.M. Best categorises as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).WoE’s balance sheet strength is underpinned by risk-adjusted capitalisation being maintained at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Free reserves have grown by an annual compound rate of approximately 12% over the past five policy years (2013-2017), as a result of full retention of net surpluses. The Club’s ability to make additional calls on members provides some financial flexibility. However, making such unbudgeted calls is considered to have a negative impact on the club’s business profile, with calls made only in extreme circumstances.For the year ending February 2017, solid operating results were supported by an underwriting surplus well-above budget expectations, resulting in a combined ratio of 87.2% (2016: 83.6%). Volatility has historically resulted from changes in the market value of equities and foreign exchange movements. A.M. Best expects a small underwriting loss in the year-ending February 2018 and close-to-break even technical results in subsequent periods, in line with the Club’s performance targetThe Club has a niche business profile insuring ship-owners and charterers against third party liability, and benefits from the membership of the International Group of P&I Clubs. WoE has a well-diversified portfolio by type of vessel and a good geographical distribution of tonnage underwritten. Continued negative pressure on premium rates is likely to offset prospective growth derived from new vessels insured.The Club’s risk management capabilities are considered as appropriately aligned with its risk profile. In particular, the risk management framework benefits from the stringent controls introduced as part of Solvency II implementation.

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