AM Best Affirms Credit Ratings of Associated Electric & Gas Insurance Services Limited

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Associated Electric & Gas Insurance Services Limited (AEGIS) (Hamilton, Bermuda). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect AEGIS’ balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

AEGIS focuses on risk diversification and capital preservation, which have been achieved through a successful combination of its energy mutual operations in the United States and uncorrelated lines of business with its Lloyd’s Syndicate 1225. AEGIS continues to maintain the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by consistent surplus growth over the past 10 years. AEGIS’ historical focus on the U.S. and Canadian utility industry has resulted in unfavorable loss experience in certain lines of business, although the diversification benefit from its Lloyd’s syndicate has continued to stabilize underwriting performance. Management continues to focus on the company’s operating performance by improving its risk management strategies, including premium rate adjustments and continued refinement of its underwriting criteria, as well as the prudent use of available reinsurance protection and modest limits. AEGIS continues to have a high member retention ratio, an adaptive and highly responsive management team, and continued expansion of programs within its corporate mission.

Factors that could lead to positive rating actions for AEGIS are sustained favorable underwriting metrics, supported by strong internal capital generation. Factors that could affect the ratings negatively are increased underwriting volatility, significant investment losses and outsized catastrophe events in conjunction with a decline in the company’s risk-adjusted capitalization.

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 specializing 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. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

src="https://cts.businesswire.com/ct/CT?id=bwnewssty=20230606005809r1sid=acqr8distro=nxlang=en" style="width:0;height:0" />

View source version on businesswire.com: https://www.businesswire.com/news/home/20230606005809/en/

Antonietta Iachetta
Senior Financial Analyst

+1 908 439 2200, ext. 5792

[email protected]

Christopher Sharkey
Associate Director, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Guilherme Monteiro Simoes, CFA

Senior Financial Analyst

+1 908 439 2200, ext. 5301

[email protected]

Al Slavin
Senior Public Relations Specialist

+1 908 439 2200, ext. 5098

[email protected]

Source: AM Best