AM Best Affirms Credit Ratings of AmTrust Assicurazioni S.p.A.
June 21 2024 - 10:53AM
Business Wire
AM Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-”
(Excellent) of AmTrust Assicurazioni S.p.A. (AmTrust Assicurazioni)
(Italy). The outlook of these Credit Ratings (ratings) is
stable.
The ratings reflect AmTrust Assicurazioni’s balance sheet
strength, which AM Best assesses as very strong, as well as its
adequate operating performance, limited business profile and
appropriate enterprise risk management.
The ratings also consider, in the form of rating lift, AM Best’s
expectation that the AmTrust group will provide financial support
to the company, if needed. In addition, the group provides
reinsurance support to AmTrust Assicurazioni.
AmTrust Assicurazioni’s risk-adjusted capitalisation, as
measured by Best’s Capital Adequacy Ratio (BCAR), is assessed as
strongest. The balance sheet strength assessment reflects the
company’s liquid and diversified investment portfolio, which is of
high credit quality. An offsetting factor is AmTrust
Assicurazioni’s high level of reinsurance dependence. However, the
risks associated with this reinsurance dependence are mitigated
partially by the excellent credit quality of its reinsurance panel
and the collateral held against unrated reinsurance
recoverables.
For 2023, notwithstanding a technical loss driven by the
cancellation of one hospital policy, AmTrust Assicurazioni reported
a pre-tax profit of EUR 9.3 million benefitting from investment
performance, primarily in the form of unrealised gains on fixed
income securities. Prospectively, AM Best expects the company’s
performance to be commensurate with an adequate assessment, with
earnings supported by a modest level of underwriting profitability
and good investment returns.
AmTrust Assicurazioni primarily underwrites medical professional
liability insurance (MPLI) business in Italy. Gross written premium
amounted to EUR 262 million in 2023. The company has a strong
market position in the Italian MPLI market, where it leverages its
specialist expertise and has a market share of approximately
40%.
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
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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