AM Best Upgrades Issuer Credit Rating of ONIX Asigurari S.A.
June 20 2024 - 12:30PM
Business Wire
AM Best has upgraded the Long-Term Issuer Credit Rating
to “bb+” (Fair) from “bb” (Fair) and affirmed the Financial
Strength Rating of B (Fair) of ONIX Asigurari S.A. (ONIX)
(Romania). The outlook of these Credit Ratings (ratings) is
stable.
These ratings reflect ONIX’s balance sheet strength, which AM
Best assesses as adequate, as well as its strong operating
performance, limited business profile and marginal enterprise risk
management.
The rating upgrade of the Long-Term ICR reflects an improved
assessment of ONIX’s balance sheet strength. This enhanced view of
balance sheet strength recognises the company’s ability to maintain
its risk-adjusted capitalization comfortably at the strongest
level, as measured by Best’s Capital Adequacy Ratio (BCAR).
Additionally, the company’s surplus grew organically in recent
years through strong underwriting performance and consistent
investment income.
ONIX’s small capital base and its lack of reinsurance protection
remain as offsetting factors in the balance sheet strength
assessment, which increase the potential for volatility in its
risk-adjusted capitalisation, particularly considering the
company’s exposure to large surety risks. The company’s limited
financial flexibility is also considered an offsetting factor in
its balance sheet strength assessment. Conversely, AM Best views
positively ONIX’s conservative investment portfolio, entirely made
up by cash or term deposits.
ONIX’s operating performance is assessed as strong, reflecting
its track record of good underwriting results since inception. For
the five-year period ending in 2023, the company reported a
weighted average combined ratio of 57.6%, as calculated by AM Best.
Non-technical profits have been modest, reflecting the company’s
conservative investment portfolio.
ONIX is a niche mono-line insurer that focuses on surety
business in Italy and Spain. The company leverages its specialist
expertise to compete against larger players.
Solvency II requirements are embedded within ONIX’s risk
framework and the company’s Solvency II regulatory capital adequacy
ratio is monitored against risk appetite levels approved by its
board. The company’s risk management framework is evolving and its
risk management capabilities are considered by AM Best to be below
the company’s risk profile in some areas.
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.
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Andrea Porta Financial Analyst +31 20 808
1700 andrea.porta@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Jose Berenguer, CFA Associate Director, Analytics
+31 20 808 2276 jose.berenguer@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com