Captive Insurance Ratings News | AM Best confirms positive credit ratings from INPEX
AM Best has assigned a financial strength rating of A- (excellent) to INPEX Insurance Ltd (ILL) (Bermuda), in addition to a long-term credit rating of “a–”.
The overall outlook for these credits (ratings) is positive.
The ratings reflect the strength of ILL’s balance sheet, which AM rates as very high.
This is supported by ILL’s risk-adjusted capitalization – assessed at the highest level as measured by Best’s capital adequacy ratio, as well as its satisfactory operating performance, neutral company profile and management. appropriate business risk.
The company’s total capital was strengthened to US$262 million as of June 30, 2022, from US$109 million as of December 31, 2021, following a capital injection from its parent company, INPEX.
IIL’s underwriting results over the five-year period (FY2017-FY2021) have been consistently positive and have contributed to an average net combined ratio of less than 40% and an average return on equity of 5%.
The positive outlook reflects AM Best’s expectation that ILL will continue to maintain positive operating results, supported by continued premium growth with strong underwriting margins and favorable claims experience across its core lines of business.
According to the rating agency, negative ratings could occur in the event of a substantial increase in losses caused by a significant change in risk appetite.