KUALA LUMPUR, Sept 10 -- AM Best has affirmed the Financial Strength Rating (FSR) of B++ (good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of ‘bbb+’ of ERGO Insurance Pte Ltd (ERGO Insurance), Singapore.
The outlook of the FSR remains stable, while the Long-Term ICR outlook remains negative. The negative outlook reflects AM Best’s expectation of continued pressure on the company’s operating performance and balance sheet strength fundamentals over the near term.
The ratings of ERGO Insurance reflect its balance sheet strength, which AM Best categorised as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The ratings also factor rating enhancement from the company’s ultimate parent, Munich Reinsurance Company (Munich Re group), according to a statement.
Despite operating losses over the past three years (2016 to 2018) having materially eroded the company’s shareholders’ equity, financial support from the Munich Re group has aided to maintain capital adequacy at an appropriate level.
ERGO Insurance is a small-sized non-life insurer in Singapore, with a market share of less than one per cent based on 2018 gross written premium. The company’s portfolio of business continues to exhibit both line of business and geographical concentration.
AM Best is a global rating agency and information provider with unique focus on the insurance industry. More information at www.ambest.com.
-- BERNAMA
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