A.M. Best upgrades credit ratings of Bermuda's Evergreen Insurance

KUALA LUMPUR, Nov 19 (Bernama) – A.M. Best has upgraded the Financial Strength Rating to A (excellent) from A- (excellent) and the Long-Term Issuer Credit Rating to ‘a’ from ‘a-’ of Evergreen Insurance Co. Ltd. (EICL) Bermuda and the outlook is stable.

The ratings reflect EICL’s balance sheet strength, which A.M. Best said as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

According to a statement, as a pure captive of Evergreen Group, EICL underwrites mainly marine, aviation and property risks related to the group’s operations.

The upgrade of EICL’s ratings reflect the improvement in the quality of its capital and liquidity position following the full repayment of the loan-back to its parent company in December 2017, coupled with the company’s prudent dividend policy over the short to intermediate term.

In addition, the company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remained at a robust level, supported by low underwriting leverage, prudent reinsurance arrangements with a diversified panel of financially sound reinsurers and a conservative reserving practice.

Despite EICL’s small absolute capital size, A.M. Best expects the company to grow its capital and surplus gradually through profit retentions while maintaining strong liquidity over the short to intermediate term.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. More details at www.ambest.com

-- BERNAMA