A.M. Best Revises Issuer Credit Rating Outlook to Positive for LocalTapiola General Mutual Insurance Company

LONDON--()--A.M. Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of “a” of LocalTapiola General Mutual Insurance Company (LocalTapiola) (Finland).The outlook of the FSR remains stable.

The ratings reflect LocalTapiola’s strategic importance to and integration within LocalTapiola Group (the group), which includes LocalTapiola, 20 regional non-life insurance companies in Finland, LocalTapiola Life, and other service and investment-related companies.

The ratings are underpinned by the group’s consolidated balance sheet strength, which A.M. Best categorises as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The revised Long-Term ICR outlook reflects the robust performance and profile that has been established over recent years, as the group has been restructured. Since the creation of the LocalTapiola group in 2012, there have been a series of internal mergers and business transfers, which concluded in 2017. Over the next few years, A.M. Best expects the group to consolidate its strong domestic competitive position while maintaining robust performance. LocalTapiola plays a vital role within the wider group, writing certain non-life insurance lines of business, as well as providing centralised group-steering operations.

A.M. Best expects the group’s risk-adjusted capitalisation to remain at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by substantial claims equalisation reserves. LocalTapiola, and each of the 20 regional mutual companies, are owned by their policyholders. However, they benefit from joint liability contracts and significant cooperation with each other, as well as being consolidated into the group’s accounts, which includes the life company. In 2017, the group is expected to have written EUR 1.6 billion of gross written premiums against capital of EUR 3.1 billion, which A.M. Best considers to be relatively moderate underwriting leverage. LocalTapiola holds more than half of the group’s capital but writes less than half of its total gross written premiums. The group’s earnings have improved in recent years, and it has reported an underwriting surplus in four out of the past five years. LocalTapiola is a leading Finnish insurance group and manages an established and far-reaching distribution network that services its mutual members, involving collaboration with a number of high-profile domestic organisations.

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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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Contacts

A.M. Best
Rishwinder Grewal, +44 20 7397 0321
Financial Analyst
rishwinder.grewal@ambest.com
or
Tim Prince, +44 20 7397 0320
Director, Analytics
timothy.prince@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Rishwinder Grewal, +44 20 7397 0321
Financial Analyst
rishwinder.grewal@ambest.com
or
Tim Prince, +44 20 7397 0320
Director, Analytics
timothy.prince@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com