AM Best

AM Best Downgrades Issuer Credit Rating of MS Amlin AG


Romeo Berti
Financial Analyst
+44 20 7397 0267

Tim Prince
Director, Analytics
+44 20 7397 0320

Christopher Sharkey
Associate Director, Public Relations
+1 908 439 2200, ext. 5159

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098


LONDON - MARCH 31, 2023 11:43 AM (EDT)
AM Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a+” (Excellent) and affirmed the Financial Strength Rating (FSR) of A (Excellent) of MS Amlin AG (Switzerland). The outlook of the Long-Term ICR has been revised to stable from negative, whereas the outlook on the FSR is stable.

These Credit Ratings (ratings) reflect MS Amlin AG’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). In addition, MS Amlin AG’s ratings benefit from rating enhancement, in the form of lift, due to the support provided by its ultimate parent, MS&AD Insurance Group Holdings, Inc. (MS&AD).

The downgrade of the Long-Term ICR reflects a deterioration of the company’s risk-adjusted capitalisation to the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR), due to multiple years of operating losses, coupled with recent strong premium growth. Whilst risk-adjusted capitalisation is expected to recover moderately over the medium term, AM Best expects it to remain at a lower level than it was historically.

The company’s underwriting profitability has been under pressure, demonstrated by a five-year (2017-2021) weighted average combined ratio of approximately 110% (including a combined ratio of 123% in 2021). However, underwriting results were marginally positive in 2022, and are expected to continue to improve as a result of corrective actions taken by the company’s new management team.

The company’s profile benefits from its relationship with its ultimate parent, MS&AD, and its recent rebranding to MS Reinsurance further strengthens its association with the MS&AD group.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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.

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AMB# Company Name
078117 MS Amlin AG
052662 MS&AD Insurance Group Holdings, Inc.