Tuesday 30 January 2018

A.M. BEST REVISES OUTLOOKS TO STABLE FOR ERGO INSURANCE PTE. LTD.

SINGAPORE, Jan 29 (Bernama-BUSINESS WIRE) -- A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of ERGO Insurance Pte. Ltd. (ERGO Insurance) (Singapore).

The affirmation of these Credit Ratings (ratings) reflects ERGO Insurance’s balance sheet strength, which A.M. Best categorizes as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management. The revised outlooks recognize ERGO Insurance’s role in supporting its parent, ERGO Group AG, with its business development plans in Asia, as well as the explicit support ERGO Insurance receives from its ultimate parent company, Munich Reinsurance Company.

ERGO Insurance’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remains solid and continues to support a balance sheet strength assessment of strong, despite a downward trend since 2014. Significant capital repatriation in the form of high dividend payments has reduced the company’s capital and liquidity position. A.M. Best expects ERGO Insurance’s risk-adjusted capitalization to remain strong in the near term, supported by reduced premium volumes.

http://mrem.bernama.com/viewsm.php?idm=31047

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