Specialist insurer Ansvar
Insurance Limited has had its “A-” (Excellent) financial strength rating and “a-” long-term issuer credit rating affirmed by A.M. Best. The outlook of these credit ratings is stable.
In a statement, the global ratings agency said the ratings reflect Ansvar
’s “strong risk-adjusted capitalization and established business profile among Australia’s faith and care organizations,” and acknowledges Ansvar
’s “low underwriting leverage, comprehensive reinsurance program, and high-quality investment portfolio.”
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Slightly offsetting the insurer’s strengths are its underwriting results, particularly the high gross loss ratio in its commercial property business. The measures Ansvar
implemented to remediate the performance of its commercial property portfolio caused its premium revenue to significantly drop from 2010 to 2013 and remain relatively flat from 2014 to 2016. A lack of critical mass has led to a high expense ratio as compared to its peers.
, in a corporate plan communicated to A.M. Best, said it expects the combined ratio to remain elevated in the short-term, as it will take time for the company’s strategic initiatives and remedial actions to materialize.
In the meantime, the ratings agency expects that the insurer’s stable stream of investment income will continue to support the company’s overall operating results to remain positive.
renews partnership for the eighth year
releases new commercial property owner