Best’s News & Research Service - December 09, 2015 10:11 AM (EST)
A.M. Best Affirms Ratings of The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg)
London //BestWire// - A.M. Best has affirmed the financial strength rating (FSR) of A- (Excellent) and the issuer credit rating (ICR) of “a-” of The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg) (the Club). The outlook for both ratings remains positive.
The positive outlook for the Club’s ratings reflects its continued strong operating performance in recent years, as demonstrated by a five-year average combined ratio of 91.7% to February 2015, together with the expectation that the Club will maintain excellent risk-adjusted capitalisation. Although the Club is a mutual, A.M. Best believes that the members are supportive of its business approach, which is to focus on underwriting profitability and retain operating surpluses. Accordingly, good operating performances over the past five years have increased free reserves from USD 95.6 million at February 2009, to USD 300.0 million at February 2015. Whilst recognising that substantial investment losses could have a significant impact on the Club’s future operating performance, A.M. Best expects that it will maintain risk-adjusted capitalisation at a level in excess of that required to support the current rating, in part due to continued enhancement of its risk management processes.
The Club has a good niche business profile providing protection and indemnity (P&I) insurance for over 32,000 small and specialised vessels operated by 6,300 members worldwide. It is the only one of the International Group of P&I Clubs to focus on smaller vessels.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.
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