KUALA LUMPUR, Feb 14 -- AM Best has affirmed the Financial Strength Rating of A- (excellent) and the Long-Term Issuer Credit Rating of ‘a-’ of The Hollard Insurance Company Pty Ltd (HIC) Australia.
The outlook of these Credit Ratings is stable, according to a statement.
The outlook of these Credit Ratings is stable, according to a statement.
These ratings reflect HIC’s balance sheet strength, which AM Best categorised as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The company’s balance sheet strength assessment is underpinned by its unconsolidated risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which improved to the very strong level in fiscal-year 2019. AM Best views HIC to have robust financial flexibility, which was demonstrated in recent years through a combination of capital injections totaling AUD50 million and the issuance of AUD40 million in subordinated debt for fiscal-years 2018-2019. (AUD1 = RM2.78)
AM Best’s balance sheet strength analysis also incorporates a neutral holding company impact following an assessment of consolidated risk-adjusted capitalisation at HIC’s immediate parent, Hollard Holdings Australia Pty Ltd.
On an unconsolidated basis, the company has reported operating profits in each of the past five years (fiscal-years 2015-2019), with an average return-on-equity ratio of 5.9 per cent.
AM Best assesses HIC’s business profile as neutral. The company has grown to be one of the top 10 non-life insurers in Australia based on gross written premiums, albeit occupying a modest market share of three per cent in 2019.
More details at www.ambest.com.
-- BERNAMA
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