A.M. Best Affirms Credit Ratings of Evergreen Insurance Company Limited
The ratings of
EICL’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remains at a high level due to a low risk retention strategy relative to its capital and surplus. Underwriting performance has remained favorable, with a low net loss ratio along with minimal distribution costs. In terms of asset quality,
Offsetting rating factors include liquidity constraints associated with the intercompany loan, which accounted for approximately one-third of the company’s total assets as of
Positive rating actions could occur if the company can strengthen its capitalization and liquidity. Negative rating actions could occur if EICL’s absolute capitalization declines materially or if its risk-adjusted capitalization decreases sharply. Furthermore, the ratings could be impacted if the parent company’s credit profile deteriorates.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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 © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
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