Best’s News & Research Service - February 28, 2023 08:19 AM (EST)
AM Best Comments on Credit Ratings of Milli Reasurans Turk Anonim Sirketi
- February 28, 2023 08:19 AM (EST)
London //BestWire// - AM Best has commented that the Financial Strength Rating of C (Weak) and the Long-Term Issuer Credit Rating of “ccc” (Weak) of Milli Reasurans Turk Anonim Sirketi (Milli Re) (Türkiye), both with a negative outlook, remain unchanged following the devastating earthquakes in Türkiye and Northern Syria.
On 6 February 2023, two powerful earthquakes of more than 7.5 magnitude struck several south-eastern Turkish provinces. The earthquakes rank among the worst tremors in the country’s history and resulted in widespread devastation, as well as the loss of thousands of lives in Türkiye and northern Syria. Turkish authorities have widely estimated that economic losses will run into the tens of billions of dollars. Elevated levels of political and economic risk in Türkiye are expected to increase further as a consequence of the catastrophe.
While there is significant uncertainty in respect of the insured loss relating to the earthquakes, AM Best expects Milli Re’s exposure to be covered largely by its comprehensive retrocession programme, backed by counterparties of robust credit quality. As a result, the company’s net exposure should be contained and risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is not expected to fall below AM Best’s previous expectations.
AM Best will continue to monitor closely events in Türkiye and their impact on Milli Re’s creditworthiness.
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.