A.M. Best Affirms Ratings of Evergreen Insurance Company Limited

HONG KONG--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of Evergreen Insurance Company Limited (EICL) (Bermuda). The outlook for both ratings is stable.

The ratings reflect EICL’s strong risk-adjusted capitalization, its contribution to the risk management of the Evergreen Group and a favorable track record of underwriting results. As a pure captive of the Evergreen Group, EICL is the group’s risk management platform and underwrites risks in marine, aviation, property, engineering, motor and other liability in relation to group operations. The ratings also recognize EICL’s prudent investment strategy and sound liquidity position.

Offsetting rating factors include EICL’s declining trend in its absolute capitalization over the past five years, primarily due to dividend payments made to the group exceeding the profits it generated despite no dividend was paid in 2014. The company expects growth in the number of insured vessels and aircrafts for the Evergreen Group, which will require adequate capital support at EICL. The company’s Best’s Capital Adequacy Ratio (BCAR) is sensitive to a single catastrophic aviation loss scenario, which could give rise to substantial credit or dispute risk associated with a potentially large reinsurance recoverable relative to its capital size.

Upward rating movement is unlikely in the near term. Downward rating movement could occur if the declining trend in absolute capitalization continues or there is a sharp decline in EICL’s risk-adjusted capitalization.

A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151111005808/en/

A.M. Best
Ken Chow, +852-2827-3426
Senior Financial Analyst
[email protected]
or
Moungmo Lee, +65-6859-8412
Managing 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

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