A.M. Best Affirms Swedish Club Rating of A-
Posted by Michelle Howard
January 15, 2016
A.M. Best Ratings Services Ltd has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” for The Swedish Club, with the outlook for both ratings remaining stable.
According to A.M. Best, the ratings reflect the Club’s excellent risk-adjusted capitalzsation and performance track record. As a Marine and P&I underwriter, the Club accepts some volatility in underwriting performance, however, with five years of profitable operations out of the past six, free reserves have increased by 80% from year-end 2008 to $186.3 million at year-end 2014. A.M. Best continues to state that while large claims, or substantial investment losses, could have a significant impact on future operating performance, it expects the Club’s risk-adjusted capitalisation to remain supportive of the ratings.
A. M. Best stated that The Swedish Club has a good underwriting record, with a five-year (2010-2014) average combined ratio of 97%. In addition investment earnings have been subject to some volatility, due in part to the high allocation to equity investments and interest movements.