HIC maintains strong credit ratings

HIC maintains strong credit ratings | Insurance Business

HIC maintains strong credit ratings
A strong balance sheet strength, adequate operating performance, neutral business profile, and appropriate enterprise risk management (ERM) have led A.M. Best to affirm the credit ratings of Australia-based The Hollard Insurance Company (HIC).

HIC, a provider of pet health insurance and domestic home and motor insurance in Australia, maintained its “A-” (Excellent) financial strength rating and “a-” long-term issuer credit rating, thanks to the niche insurer's focus on profitable growth and remedial underwriting actions.

The outlook of both ratings is stable.

The agency said the ratings action was due to HIC having a level of balance sheet strength that “is reflective mainly of its equity investments and moderate underwriting leverage,” and its expectation that the insurer will “remain consistently profitable.”

A.M. Best also noted that despite a modest performance in recent years and less than 2% share in the Australian market, HIC “has good market positions in some niche segments within its domestic insurance market, primarily in short-tail insurance products,” and “a diversified network of distribution partners,” which enables the company to pursue further growth.

Furthermore, A.M. Best said the niche insurer “has demonstrated an overall good ability to address most of its risks, primarily through underwriting, risk selection, reinsurance, and sound operating controls.”

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