A.M. Best Affirms Credit Ratings of Credendo – Single Risk Insurance AG
The ratings reflect Credendo – Single Risk’s balance sheet strength, which
Credendo – Single Risk’s balance sheet strength is underpinned by consolidated risk-adjusted capitalisation at the strongest level at year-end 2017, as measured by Best’s Capital Adequacy Ratio (BCAR). The balance sheet strength assessment also factors in the company’s good liquidity profile and low net underwriting leverage. A.M. Best’s view of prospective risk-adjusted capitalisation includes consideration of a capital increase of approximately
The company has a weak earnings track record, as demonstrated by a five-year return on equity of -3.6%. Underwriting losses have been reported in each of the past three years (2015-2017), largely due to an increase in claims frequency, including an increase in the number of large losses. Underwriting performance has been volatile, reflecting the company’s focus on emerging market risks that are highly correlated with changes in the global political and economic environment. However, prospective underwriting performance is likely to improve due to adjustments to the company’s underwriting practices and strategy.
Credendo – Single Risk’s limited business profile reflects its relatively small size and absence of diversification as a mono-line credit insurer operating in a highly competitive and volatile market environment.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180427005506/en/
Financial Analyst
[email protected]
or
Senior Director, Analytics
[email protected]
or
Manager, Public Relations
[email protected]
or
Director, Public Relations
[email protected]
Source:
Physiotherapy Equipment Market: Musculoskeletal Application Set to Hold High Revenue Share During 2017 – 2022
CBRE report: Commercial real estate investors upbeat at start of 2018
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News