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FOR IMMEDIATE RELEASE
SINGAPORE - SEPTEMBER 21, 2018 12:14 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” of ECICS Limited (ECICS) (Singapore). The outlook of the Long-Term ICR has been revised to negative from stable, while the FSR outlook remains stable. Concurrently, A.M. Best has withdrawn the ratings of ECICS, as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The ratings reflect ECICS’ balance sheet strength, which A.M. Best categorizes as strong, as well as the company’s marginal operating performance, neutral business profile and appropriate enterprise risk management.
The Long-Term ICR outlook revision to negative reflects A.M. Best’s concern with the heightened
execution risk related to the ECICS’ plan to return to profitability by rebalancing its portfolio amid difficult market conditions.
The rating affirmations acknowledge ECICS’ solid risk-adjusted capitalization, supported by low underwriting leverages and good asset quality albeit declining in recent years. These positive rating factors are offset partially by ECICS’ operating performance, which compares unfavorably with peers, as the company seeks growth in new lines of business in a challenging operating landscape.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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