Best’s News & Research Service - December 18, 2025 08:45 AM (EST)
AM Best Upgrades Issuer Credit Rating of Irwell Insurance Company Limited
- December 18, 2025 08:45 AM (EST)
//BestWire// - AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “bbb” (Good) and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Irwell Insurance Company Limited (Irwell) (United Kingdom). The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook of the FSR is stable.
The Credit Ratings (ratings) reflect Irwell’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The upgrading of the Long-Term ICR reflects improvements to Irwell’s balance sheet strength fundamentals, notably through strengthened risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), underpinned by good earnings retention over recent years.
Irwell’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation comfortably at the strongest level, as measured by BCAR. The assessment considers Irwell’s high-quality asset base and moderate dependence on reinsurance used to support new risks with high limits relative to its capital base. A partially offsetting factor is the company’s relatively small capital base of GBP 38 million at fiscal year-end 2025 (FY 25), which exposes its risk-adjusted capitalisation to potential volatility.
Irwell has a track record of positive operating performance, reporting a five-year (FY21-25) weighted average return on equity ratio of 14%. Underwriting profits are the main driver of earnings, with the company reporting a five-year weighted average combined ratio of 84%. The close relationship with the Peninsula Business Services Group Ltd (PBSG), a group of service companies that distribute Irwell’s products and are owned by its ultimate shareholders, enables the company to benefit from good quality business. In addition, Irwell maintains technical profitability through pricing and commission arrangements with PBSG.
Irwell benefits from a niche position as a provider of legal expenses insurance to clients of PBSG, which provides advice on human resources, tax investigation and health and safety services in the United Kingdom. In addition, the company writes general liability business through managing general agents insuring third parties. AM Best expects Irwell’s portfolio to grow over the medium term, supported by the material expansion of its business through new and existing product lines.
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 (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) 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 specializing 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.