Aegis rating affirmed by AM Best

Bermuda-based energy mutual Associated Electric & Gas Insurance Services has had its financial strength rating of A (Excellent) affirmed with a stable outlook by ratings agency AM Best.

AM Best said the ratings reflect Aegis’ balance sheet strength, assessed as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Best said Aegis has successfully focused on risk diversification and capital preservation, which have been achieved through a successful combination of its energy mutual operations in the US and uncorrelated lines of business with its Lloyd’s Syndicate 1225.

Best said Aegis’ historical focus on the US and Canadian utility industry had resulted in unfavourable loss experience in certain lines of business, but the diversification benefit from its Lloyd’s syndicate had stabilised its underwriting performance.

It added: "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."