A.M. Best Downgrades Credit Ratings of Nomad Insurance Company JSC
The Credit Rating (rating) downgrades follow a downward trend in Nomad Insurance’s risk-adjusted capitalisation, owing to a rise in its net underwriting leverage and the payment of dividends over the past two years.
The negative Long-Term ICR outlook considers the risk that Nomad Insurance’s risk-adjusted capitalisation could decline further, taking into account the potential for a further increase in its net underwriting leverage, as well as future dividend payments.
The ratings reflect Nomad Insurance’s balance sheet strength, which
Nomad Insurance’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed as adequate as of year-end 2017. Risk-adjusted capitalisation has declined over the past two years due to a rise in net underwriting risk in 2016, as the company discontinued its motor third-party liability quota share reinsurance protection, and in 2017, due to a 34% growth in net written premium, as it expanded into new lines of business. At the same time, significant dividend payments were made in 2016 and 2017.
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
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