AM Best has assigned and upgraded the credit ratings of a number of firms, reflecting changes to elements including balance sheets, operating performance and risk management.
The financial strength rating of GIG Insurance in Egypt has been upgraded to A (excellent) (from B++ (good)), and the long-term issuer credit rating has risen from bbb+ (good) to a (excellent), both with a stable outlook.
A very strong balance sheet, strong operating performance, limited business profile and appropriate enterprise risk management have led to the change, AM Best said, as has the importance of GIG-Egypt to its parent company GIG.
The majority of the firm’s assets are held in Egyptian government bonds and local real estate, and although investment opportunities are limited by regulatory restrictions AM Best believes that the company will be able to absorb higher risk charges associated with locally-held assets.
Outlooks for Pacific Indemnity Insurance Company have been amended, now categorised as positive rather than stable. This allows consistent capital base growth through core functions, AM Best noted, along with favourable liquidity metrics, a conservative investment portfolio and market volatility resistance.
In addition to these upgrades, a number of companies have been assigned credit ratings.
Société Nationale d’Assurance (SAA) (Algeria) has been assigned a financial strength rating of B (Fair) and a long-term issuer credit rating of bb+ (fair), both with a stable outlook. The decision reflects the firm’s very strong balance sheet strength, AM Best said, along with its adequate operating performance, neutral business profile and marginal enterprise risk management.
Cash and government bonds made up 65% of SAA’s investments as of year-end 2023, which has translated into a 114% ratio of liquid assets to total liabilities, AM Best reported. However, this is partially offset by exposure to the elevated levels of economic, political and financial system risks in Algeria, it added.
Helvetia Schweizerische Versicherungsgesellschaft (Helvetia Insurance Switzerland), the main operating subsidiary of Helvetia Holding (Helvetia), has been assigned a financial strength rating of A (excellent) and a long-term issuer credit rating of a+ (excellent), with a stable outlook.
A conservative investment allocation, weighted toward investment-grade fixed income instruments, a history of favourable reserve development, access to debt and capital markets and strong regulatory solvency have all contributed to the ratings, AM Best said.
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