KUALA LUMPUR, Aug 30 -- AM Best has affirmed the Financial Strength Rating of A- (excellent) and the Long-Term Issuer Credit Rating of ‘a-’ of INPEX Insurance Ltd (IIL), Bermuda.
The stable outlook of these credit ratings reflects IIL’s balance sheet strength, which AM Best categorised as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The company’s very strong balance sheet strength assessment mainly reflects its low underwriting leverage and conservative investment portfolio, according to a statement.
The ratings also reflect IIL’s role within the insurance purchase strategy and corporate risk management of its parent, INPEX CORPORATION (INPEX), the largest oil and gas exploration and production company in Japan.
IIL is a single parent or pure captive insurer wholly owned by INPEX. It provides coverage that mainly consists of property damage, third-party liability and operator’s extra expenses for its parent, affiliates and joint-venture companies.
Negative rating actions could occur if there is a substantial increase in losses caused by a material shift in risk appetite or significant erosion of capital. Significant deterioration in INPEX’s credit profile could also put downward pressure on IIL’s ratings.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. More information at www.ambest.com.
-- BERNAMA
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