AEGIS gets positive outlook from AM Best
Associated Electric & Gas Insurance Services has been given a positive outlook credit rating by ratings agency AM Best, which cited its consistent earnings even in years of large loss events for the industry.
Bermuda-based AEGIS, a mutual insurer for the power generating industry, also had its financial strength rating of A affirmed. The FSR outlook is stable.
"The positive Long-Term ICR outlook reflects AEGIS’ positive earnings, which have been consistent even in years of large loss events for the industry, and throughout low interest-rate market conditions," AM Best said. "Underwriting returns have been supported by appropriate premium rate increases and a meticulous review of accounts, while investment returns have been supported by a conservative, liquid strategy."
The agency added: "AEGIS focuses on risk diversification and capital preservation, which have been achieved through a successful combination of its energy mutual operations in the United States and uncorrelated lines of business with its Lloyd’s Syndicate 1225.
"AEGIS continues to maintain the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by consistent surplus growth over the past 10 years. AEGIS’ historical focus on the US and Canadian utility industries and the diversification benefit from its Lloyd’s syndicate continues to stabilise underwriting performance.
"Management continues to focus on the company’s operating performance by improving its risk management strategies, including continued refinement of its underwriting criteria, as well as the prudent use of available reinsurance protection and modest limits. AEGIS continues to have a high member retention ratio, an adaptive and highly responsive management team and continued expansion of programs within its corporate mission."
AM said the credit ratings reflected AEGIS’ balance sheet strength, which AM Best assessed as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
