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FOR IMMEDIATE RELEASE
OLDWICK - JULY 17, 2020 09:16 AM (EDT)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Associated Electric & Gas Insurance Services Limited (AEGIS) (Hamilton, Bermuda). The outlook of the Credit Ratings (ratings) is stable.
The ratings reflect AEGIS’ balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
AEGIS’ strategy emphasizes risk diversification and a relatively conservative approach to capital preservation. This diversification is achieved through the successful combination of its energy mutual operations in the United States with Lloyd’s Syndicate 1225 in uncorrelated lines of business. These favorable rating factors partially are offset by the periodic unfavorable loss experience in certain lines of business over time. Management continues to focus on the company’s operating performance by improving its risk management strategies, including premium rate adjustments, continued refinement of its underwriting criteria and the prudent use of available reinsurance protection and modest limits, which helped dampen losses and volatility associated with the California wildfires in 2018. AEGIS continues to demonstrate a high member retention ratio, an adaptive and highly responsive management team and the continued expansion of programs within its corporate mission.
Factors that could lead to positive rating actions for AEGIS are sustained favorable underwriting and the company maintaining its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Factors that could negatively affect the ratings are increased underwriting volatility, significant investment losses or outsized catastrophic events, in conjunction with a decline in the risk-adjusted capitalization.
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 specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.