AM Best Affirms Credit Ratings of ERIKA Försäkringsaktiebolag (publ)
June 20 2024 - 10:59AM
Business Wire
AM Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-”
(Excellent) of ERIKA F�rsäkringsaktiebolag (publ) (Erika) (Sweden).
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Erika’s balance sheet strength, which AM
Best assesses as very strong, as well as its strong operating
performance, limited business profile and appropriate enterprise
risk management.
Erika’s strongest level of risk-adjusted capitalisation, as
measured by Best’s Capital Adequacy Ratio (BCAR), along with its
conservative and liquid investment portfolio and prudent reserving,
collectively contribute to an overall balance sheet strength
assessment of very strong by AM Best.
The company has a track record of strong operating performance,
evidenced by a five year (2019-2023) weighted average return on
equity of 9.6%. Erika’s results have been underpinned by robust and
stable underwriting margins, with the company recording a technical
surplus in each of the past 18 years (2006-2023).
Erika is the primary provider of travel insurance to people
travelling worldwide on the various international education
programmes offered by Education First (EF). All business is sourced
solely from EF tour operators, which limits Erika’s control over
distribution and growth. Erika’s limited business profile
assessment also reflects its relatively small portfolio,
concentrated within one line of business. However, the risks
associated with this concentration are mitigated partially by the
company’s relatively low product risk and geographic
diversification.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best’s Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specialising in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240620790330/en/
Juan A. Villaescusa Prades Financial Analyst
+31 636162585 juan.villaescusa@ambest.com Mathilde
Jakobsen Senior Director, Analytics +31 20 808
3118 mathilde.jakobsen@ambest.com Christopher Sharkey
Associate Director, Public Relations +1 908 882 2310
christopher.sharkey@ambest.com Al Slavin Senior Public
Relations Specialist +1 908 882 2318
al.slavin@ambest.com