Best’s News & Research Service - January 24, 2020 09:56 AM (EST)
AM Best Withdraws Credit Ratings of Energy Risk Indemnity Reinsurance Inc.
- January 24, 2020 09:56 AM (EST)
Mexico City //BestWire// - AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Energy Risk Indemnity Reinsurance Inc. (ERI Re) (Barbados). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect ERI Re’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings were placed under review with developing implications on Dec. 6, 2018, as AM Best’s original rating decision was appealed based on material new information. In January and August 2019, AM Best maintained the under review status, as ERI Re at each juncture presented information to resolve the rating issues, although AM Best’s concerns regarding implementation remained.
As ERI Re continued the implementation of its plans, the concerns surrounding the under review status have been resolved in terms of the company’s corporate and financial structures. The rating affirmations with stable outlooks reflect AM Best’s expectation that the company will remain with a very strong capital position.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of AM Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Evaluating Country Risk (Version Oct. 13, 2017)
- Understanding Universal BCAR (Version May 23, 2019)
- Available Capital & Holding Company Analysis (Version Oct. 13, 2017)
- Rating New Company Formations (Version Oct. 13, 2017)
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Guide to Best’s Credit Ratings.
- Previous Rating Date: Aug. 28, 2019.
- Date Range of Financial Data Used: Dec. 31, 2014-Dec. 19, 2019.
This press release relates to rating(s) that have been published on AM Best’s website. For additional 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.
AM Best does not validate or certify the information provided by the client in order to issue a credit rating.
While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. AM Best does not audit the company’s financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.
AM Best’s credit ratings are independent and objective opinions, not statements of fact. AM Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. AM Best’s credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.
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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.