LONDON–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Ratings of A
(Excellent) and the Long-Term Issuer Credit Ratings of “a+” of MS Amlin
AG (Switzerland), and Lloyd’s Syndicate 2001 (Syndicate 2001) (United
Kingdom), which is managed by MS Amlin Underwriting Limited. The outlook
of these Credit Ratings (ratings) remains stable.
MS Amlin AG’s ratings reflect the company’s balance sheet strength,
which AM Best categorises as very strong, as well as its adequate
operating performance, neutral business profile and appropriate
enterprise risk management (ERM). In addition, the ratings benefit from
enhancement due to the support of MS Amlin group’s ultimate parent,
MS&AD Insurance Group Holdings, Inc. (MS&AD).
Syndicate 2001’s ratings reflect the balance sheet strength of the
Lloyd’s market, which AM Best categorises as very strong, as well as its
strong operating performance, favourable business profile and
appropriate ERM. The Lloyd’s market rating is the floor for all
syndicate ratings, reflecting the Lloyd’s chain of security, and, in
particular, the role of the Central Fund, which partially mutualises
capital at the market level.
MS Amlin AG is a mid-tier reinsurer with gross written premiums of USD
1.3 billion in 2018. The company’s market position and brand benefit
from its association with Syndicate 2001 and MS&AD. Syndicate 2001 is
one of the largest Lloyd’s syndicates, with a capacity of GBP 1,850
million for the 2019 year of account (unchanged from 2018). MS Amlin AG
and Syndicate 2001, which account for the majority of MS Amlin group’s
business, write a diversified book of property/casualty, marine/aviation
and reinsurance business.
MS Amlin AG’s balance sheet strength is underpinned by its strongest
risk-adjusted capitalisation, based on Best’s Capital Adequacy Ratio
(BCAR) as at year-end 2018. The capital position is subject to
volatility, due to exposure to high-severity losses. Nevertheless, AM
Best expects that the company will maintain the strongest level of
risk-adjusted capitalisation, supported by MS&AD, if required. MS Amlin
AG’s ratings consider the company’s strategic importance to MS&AD as the
group’s principal international reinsurer.
In 2018, both MS Amlin AG and Syndicate 2001 were unprofitable, largely
due to losses from catastrophe events. Results were also dampened by
higher-than-expected large loss occurrence and adverse attritional
experience. However, the size of reported underwriting losses was lower
in comparison with the prior year, with MS Amlin AG and Syndicate 2001
recording combined ratios of 106% (2017: 130%) and 111% (2017: 141%),
respectively, as calculated by AM Best. Strategic portfolio remediation
has been underway across the MS Amlin group to address the unfavourable
attritional experience and will continue over the near term. As part of
this, some lines of business were discontinued or had their capacity
reduced in 2018. In addition, a number of actions were undertaken to
reduce uncertainty around the prior year loss reserves. In particular,
the group purchased an adverse development cover in respect of the 2018
and prior years’ earned business.
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 Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Yevgine Asatryan
Senior Financial Analyst
+44
20 7397 0316
[email protected]
Tim Prince
Director, Analytics
+44 20 7397
0320
[email protected]
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
[email protected]
Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
[email protected]
