LONDON--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Ratings (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long Term ICR) of “a+” of Hiscox Insurance Company (Bermuda) Limited (Hiscox Bermuda), Hiscox Insurance Company Limited (Hisco) (United Kingdom), Hiscox Insurance Company (Guernsey) Limited (Hiscox Guernsey), Hiscox Insurance Company, Inc. (HICI) (Chicago, Illinois, USA) and Lloyd’s Syndicate 33 (United Kingdom), which is managed by Hiscox Syndicates Limited. At the same time, A.M. Best has affirmed the Long-Term ICR of “bbb+” of Hiscox Ltd (Hiscox) (Bermuda), the ultimate non-operating holding company of the Hiscox group of companies. The outlook of these Credit Ratings (ratings) remains stable.
The rating affirmations of Hiscox, Hiscox Bermuda and Hisco reflect the Hiscox group’s strong consolidated risk-adjusted capitalisation and good financial flexibility. The ratings also reflect Hiscox’s strong operating performance, underpinned by an average five-year combined ratio of 86%. Hiscox pursues a successful strategy of balancing volatile international catastrophe and large loss-exposed insurance and reinsurance business with more stable local retail business, which continues to support its profitable performance.
A.M. Best expects good underwriting performance for 2016 supported by benign catastrophe experience and strong performance in the group’s local retail business. A.M. Best assumes in its projections for the medium term (2017-2018) that a return to average catastrophe experience will result in lower earnings, compared with the strong years of 2012-2015.
The ratings of Hiscox Bermuda and Hisco factor in the strategic importance of the companies to the Hiscox group. Each company has established a track record of good operating performance and has made a positive contribution to overall earnings during the past five years. The ratings of Hiscox Guernsey and HICI reflect explicit support from Hiscox Bermuda in the form of reinsurance protection.
The rating affirmations of Lloyd’s Syndicate 33 reflect the underlying strength of the Lloyd’s market, as well as the syndicate’s strong performance record and enhanced financial flexibility from the support of Hiscox, which provides 72.5% of the syndicate’s capacity through its corporate member.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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