AM Best has highlighted improved operating performance and profitability, as well as the introduction of strengthened underwriting team, as being behind a positive revision to XL’s issuer credit rating and an affirmation of its A (Excellent) financial strength rating.
The rating agency said that the rating affirmations reflect XL’s “excellent risk-based capitalisation, strong worldwide market presence and stabilisation of the group's overall earnings profile.” The report highlighted the underwriting performance the group had achieved during the first half of 2013—a combined ratio of 90.8 percent—as an indicator of continued optimism.
AM Best commended XL on its focus upon “core underwriting strengths” and its introduction of senior underwriters to lead its group business. They added that future rating actions—both positive and negative—would reflect ongoing underwriting and operating performance.
XL, AM Best, rating, insurance, reinsurance