AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a" (Excellent) of MS Amlin Insurance SE (MS AISE) (Belgium). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect MS AISE's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. In addition, MS AISE's ratings benefit from lift due to the support of its ultimate parent, MS&AD Insurance Group Holdings, Inc. (MS&AD).
AM Best expects MS AISE's risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), to remain at least at the very strong level. The balance sheet strength assessment also factors in the company's conservative investments and strong liquidity profile. A partly offsetting rating factor is MS AISE's moderate dependence on reinsurance. However, the associated credit risk is mitigated by the use of a financially strong and diverse reinsurance panel.
The company has achieved robust underwriting results over the last five years (2019-2023), following corrective actions. In 2023, MS AISE reported a combined ratio of 98% (2022: 97%), as calculated by AM Best, supported by disciplined underwriting and rate increases. At second-quarter 2024, MS AISE recorded a combined ratio of 97% (based on the company's internal IFRS 4 accounting), slightly higher than its guidance target of 96%.
MS AISE is a mid-tier commercial specialty carrier with gross written premium of EUR 1,217 million in 2023 (2022: EUR 983 million), covering a diversified book of property/casualty and marine businesses. The company has a recognised brand and a market position that is supported by its association with MS&AD. The carrier also benefits from good market expertise and a strong position in a number of niche markets. MS AISE's ratings also consider its strategic importance to MS&AD as it is the group's vehicle to write primary business in continental Europe.
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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Valentine Gu, AAG
Associate Financial Analyst
+31 20 308 5421
valentine.gu@ambest.com
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Associate Director, Public Relations
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Dr. Mathilde Jakobsen
Senior Director, Analytics
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Al Slavin
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al.slavin@ambest.com
