AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of AmTrust Assicurazioni S.p.A. (AmTrust Assicurazioni) (Italy). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect AmTrust Assicurazioni's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings also consider, in the form of rating lift, AM Best's expectation that the AmTrust group will provide financial support to the company, if needed. In addition, the group provides reinsurance support to AmTrust Assicurazioni.
AmTrust Assicurazioni's risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), is assessed as strongest. The balance sheet strength assessment also reflects the company's liquid and diversified investment portfolio, which is of high credit quality. An offsetting factor is AmTrust Assicurazioni's high level of reinsurance dependence. However, the risks associated with this reinsurance dependence are mitigated partially by the excellent credit quality of its reinsurance panel and the collateral held against unrated reinsurance recoverables.
For 2022, AmTrust Assicurazioni reported a pre-tax loss of EUR 46.1 million driven by a negative investment performance, primarily in the form of unrealised losses on fixed income securities. The company's technical performance remained good, with a combined ratio of 94.9% (as calculated by AM Best). In 2021, the combined ratio was 84.9%, benefiting from a one-off adjustment with reinsurers. AmTrust Assicurazioni's book of business was transferred from other AmTrust group entities in July 2020, and the 2021 result, therefore, reflects its first full year of business. Considering the historical performance of the transferred book, AM Best expects the company's prospective performance to be commensurate with an adequate assessment, with earnings supported by a modest level of underwriting profitability and good investment returns.
AmTrust Assicurazioni primarily underwrites medical professional liability insurance (MPLI) business in Italy. Gross written premium amounted to EUR 263 million in 2022. The company has a strong market position in the Italian MPLI market, where it leverages its specialist expertise and has a market share of approximately 40%.
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
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