ACE receives rating boost from AM Best
AM Best has recognised ACE’s “consistent focus on underwriting profitability” and the strength of its company-wide ERM as it revised the group’s outlook from stable to positive.
ACE Limited and most of its subsidiaries now enjoy an A+ (Superior) rating from AM Best and an issuer credit rating of “aa”.
AM Best said that strong capitalisation, prudent acquisitions over the years and historically favourable earnings and cashflow had all stood the re/insurer in good stead. The rating agency said that in spite of soft market conditions, the economic downturn and high cat losses in recent years, earnings and risk-adjusted capital levels have remained strong. AM Best credited the effectiveness of ACE’s ERM programme as a leading driver in its ongoing success.
A competitive market, falling reserve redundancies and troubled investment returns have all required discipline at the firm, the report said, but a “focused and diligent” approach to pricing discipline, close attention to product and risk selection and the active management of exposures have helped to generate “continued positive underwriting results”.