KUALA LUMPUR, Dec 3 (Bernama) -- A.M. Best -- a global rating agency and information provider -- has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of ‘bbb+’ of First Net Insurance Company (First Net) Guam.
The outlook of these credit ratings is stable. It reflect the company’s balance sheet strength, which A.M. Best categorised as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
First Net maintained solid risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). The company benefits from stable business distribution through its affiliate, Moylan’s Insurance Underwriters, Inc.
Its small capital size and premium scale has exposed it to expense pressure, as well as potential volatility in underwriting results and risk-adjusted capitalisation from large catastrophe events. The company mitigates these risks through a conservative reinsurance strategy and a high quality reinsurer panel.
Positive rating actions could occur if First Net demonstrates sustained improvement and a consistent trend in operating performance for an extended period, contributing to surplus growth, a statement said.
Meanwhile, negative rating actions could occur if there is significant deterioration in the company’s operating performance or if there are material capital or dividend payouts that lead to a substantial decline in its risk-adjusted capitalisation.
More details on www.ambest.com.
-- BERNAMA
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