KUALA LUMPUR, Nov 21 (Bernama) -- Global credit rating agency AM Best has affirmed Bermuda’s NEWGT Reinsurance Company Ltd (NEWGT) Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent).
In a statement, AM Best said the credit ratings (ratings) which have a stable outlook, reflected NEWGT’s balance sheet strength, which was assessed as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
NEWGT’s balance sheet strength is well-supported by its risk-adjusted capitalisation, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio.
The company’s capital base, albeit reduced following a sizeable dividend upstream to its parent, ITOCHU Corporation (ITOCHU), in the fiscal year ended March 31, 2023, is expected to remain sufficient to support its underwriting portfolio over the medium term.
Additionally, NEWGT’s operating performance has been consistently positive during the most recent five-year period, with the company recorded notable growth in both premium income and net profit for the same fiscal year.
This was a result of a strong performance in ITOCHU's trading business, which was attributable to higher commodity prices and foreign exchange benefits from the depreciation of the Japanese yen during that period.
Notwithstanding the moderate volatility in the major lines of marine cargo business due to the impact of commodity price fluctuations, AM Best expects that NEWGT’s operating performance will remain profitable over the intermediate term given the company’s prudent underwriting practices and reinsurance programmes.
As a wholly owned subsidiary and captive insurer of ITOCHU, one of Japan’s largest general trading companies, NEWGT provides reinsurance protection against group-related risks across various regions.
A majority of its business comes from ITOCHU-related marine business, and the remaining portfolio consists of a diverse mix of non-life business lines, including theft insurance, renters’ insurance, and group personal accident.
-- BERNAMA
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