AM Best, a global credit rating agency has rated the outlook of AXA Mansard Insurance plc negative.
The rating agency, revealed this in its September 2019 rating emphasising that the credit ratings included in the report are as of August 31, 2019 and contains published (re)insurance rating in over 90 countries, excluding the United States.
The agency also gave the underwriting firm’s Financial Strength Rating (FSR) B+ (Good) and Issuer Credit Rating (ICR) bbb-
The Chief Financial Officer, AXA Mansard Insurance Plc, Ngozi Ola-Isreal, reacting to the rating said, “The ratings mentioned were released in December 2018. Our Financial strength Rating was B+ (Good) while our Long term Issuer Credit Rating was rated bbb- . The reason for the negative outlook on the credit ratings was as a result of our real estate portfolio which AM Best considered high, we have already executed partial disposals in current year and expect to dispose more before year end. The 2019 rating process will soon commence.”
According to the rating agency: “This report includes credit ratings for all companies rated by AM Best worldwide, as well as their outlooks and implications. It excludes entities rated in the United States. Credit ratings consist of the Financial Strength Rating (FSR) and Issuer Credit Rating (ICR) for each company. Detailed reports, including rationales, are made available to subscribers on our website shortly after ratings are released.
“For explanations of rating terminology, refer to the Guides to Best’s Ratings following this report. Credit ratings are effective as of 31st August 2019.”
It further noted that to enhance the usefulness of ratings, It assigns each rated (A++ through D) insurance company a Financial Size Category (FSC).
“The FSC is based on adjusted policyholders’ surplus (PHS) in U.S. dollars and may be impacted by foreign currency fluctuations. The FSC is designed to provide a convenient indicator of the size of a company in terms of its statutory surplus and related accounts,” the agency said.