MARCH 29, 2021 08:32 AM (EDT)
AM Best Comments on Credit Ratings of Evergreen Insurance Company Limited Following Suez Canal Ship Grounding
Associate Financial Analyst
+852 2827 3416
+852 2827 3418
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
HONG KONG - MARCH 29, 2021 08:32 AM (EDT)
AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Evergreen Insurance Company Limited (EICL) (Bermuda), remain unchanged following the grounding of the container ship, Ever Given, in the Suez Canal on 23 March 2021. The outlook of these Credit Ratings (ratings) is stable.
Ever Given is owned by the Japanese firm Shoei Kisen Kaisha, Ltd.; it is a chartered vessel currently leased by Evergreen Marine Corp. (Taiwan) Limited (EMC) under a time charter agreement. According to public disclosures by EMC, potential expenses arising from the salvage operation, cost of repair to hull and machinery, as well as third-party liability are borne by the ship owner. EICL does not have direct underwriting exposure to the aforementioned insurance coverages. The potential claims arising from this incident are expected to be within EICL’s risk tolerance. As such, AM Best believes the impact to EICL’s credit fundamentals is limited. AM Best will continue to monitor the development of the incident, as well as the financial impact to EICL.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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.