A.M. Best Affirms Ratings of Bankers Assurance S.A.L.

LONDON--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb” of Bankers Assurance S.A.L. (Bankers) (Lebanon). The outlook for both ratings remains stable.

The ratings reflect Bankers’ strong risk-adjusted capitalisation, solid technical performance and established market franchise in Lebanon. Offsetting rating factors are the economic and political risks associated with operating in Lebanon.

Bankers’ risk-adjusted capitalisation remained strong in 2014, despite an increase in net underwriting risks stemming from high growth in the company’s life, medical and motor lines of business. Furthermore, the company’s capital position is likely to strengthen in 2015, as A.M. Best expects robust internal capital generation to support prospective growth.

The company expects to report a net result of approximately LBP 11.0 billion (USD 7.4 million) for 2014 driven by strong underwriting performance, with the combined ratio expected to remain in line with the five-year average of about 90%, and a stable investment return of approximately 2%. The technical profit for 2014 is anticipated to increase compared with 2013, driven by substantial growth in gross written premium of approximately 28% as a result of winning several large tenders, whilst maintaining a focus on strong technical fundamentals.

Bankers has a leading franchise in its domestic market, with a diversified portfolio covering life and non-life business segments. The company is the main insurance arm of Nasco Insurance Group Limited, a large insurance and reinsurance group with operations across Europe and the Middle East.

Regional political instability and social unrest have the potential to seriously disrupt economic conditions in Lebanon. Despite Bankers’ solid operating performance, the potential for business disturbance remains heightened. A.M. Best will continue to monitor developments in Lebanon and assess any impact on the company.

Upward rating movement for Bankers is unlikely in the near term. Downward rating pressure could occur if Bankers' risk-adjusted capitalisation were to decrease to a level not supportive of the current ratings, from a prolonged deterioration in operating performance, or due to an increase in the level of political and economic risks in Lebanon.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilised:

• Catastrophe Analysis in A.M. Best Ratings
• Evaluating Non-Insurance Ultimate Parents
• Evaluating Country Risk
• Rating Members of Insurance Groups
• Risk Management and the Rating Process for Insurance Companies
• Understanding Universal BCAR

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

A.M. Best Company
Aneela Mather-Khan, CA, +(44) 20 7397 0329
Associate Financial Analyst
[email protected]
or
Ghislain Le Cam, CFA, +(44) 20 7397 0268
Associate Director, Analytics
[email protected]
or
Christopher Sharkey, +(1) 908 439 2200, ext. 5159
Manager, Public Relations
[email protected]
or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company

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