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Best’s News & Research Service - November 30, 2022 10:24 AM (EST)

AM Best Affirms Credit Ratings of MS Amlin Insurance SE

  • November 30, 2022 10:24 AM (EST)
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Amsterdam //BestWire// - AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of MS Amlin Insurance SE (MS AISE) (Belgium). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect MS AISE’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. In addition, MS AISE’s ratings benefit from lift due to the support of its ultimate parent, MS&AD Insurance Group Holdings, Inc. (MS&AD).

AM Best expects MS AISE’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), to remain at least at the very strong level, supported by adequate earnings generation and a capital injection of EUR 110 million from the group, MS&AD, in the first quarter of 2022. The balance sheet strength assessment also factors in the company’s conservative investment risk exposure and strong liquidity profile. A partly offsetting rating factor is MS AISE’s moderate dependence on reinsurance. However, the associated credit risk is mitigated by the use of a financially strong and diverse reinsurance panel.

The company has a modest earnings track record, reflected by a five-year weighted average combined ratio of 102% (2017-2021), as calculated by AM Best. However, MS AISE has implemented a number of corrective actions, which have driven improving performance metrics over recent years. In 2021, MS AISE recorded a combined ratio of 95% (2020: 98%), supported by disciplined underwriting and rate increases. AM Best expects technical result for 2022 to reflect adverse impacts of higher natural catastrophe claims and some deterioration in marine claims experience. The company reported a combined ratio of 99% at end of third-quarter 2022.

MS AISE is a mid-tier commercial specialty carrier with gross written premium of EUR 869 million in 2021 (EUR 855 million in 2020), covering a diversified book of property/casualty and marine business. The company has a recognised brand and a market position that is supported by its association with MS&AD. The carrier also benefits from good market expertise and strong positions in a number of niche markets.

MS AISE’s ratings also consider the company’s strategic importance to MS&AD as the group’s vehicle to write primary business in continental Europe.

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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