Best’s Special Report: EMEA Insurance Market Ratings – Reviewing the Impact of Best’s Credit Rating Methodology

LONDON--()--Ratings of AM Best-rated (re)insurance groups in EMEA have shown stability over the past year. Despite a marginal decline in the balance sheet strength assessment across the population, AM Best considers that robust balance sheets are a strength for rated (re)insurance groups.

The new Best’s Special Report, “EMEA Insurance Market Ratings: Reviewing the Impact of Best’s Credit Rating Methodology,” identifies positive development in emerging markets. A rating unit within the United Arab Emirates (UAE) has become the first emerging market entity to achieve an “a+” Long-Term Issuer Credit Rating (ICR) from AM Best. This company is the only lead rating unit with a very strong assessment for operating performance within the EMEA population.

The report considers AM Best’s broad geographical rating coverage across most rated (re)insurance groups across Continental Europe (mainly France, Germany, Spain and the United Kingdom), the Middle East (predominately Bahrain, Jordan and the UAE), Africa (notably in Kenya and Nigeria) and Eastern Europe (largely Kazakhstan and Russia).

The types of companies rated, operating in mature and emerging markets, are diverse. They include reinsurers, insurers, mutuals, captives, credit and health insurers, takaful operators and protection and indemnity (P&I) clubs.

Jalpa Thanky, senior financial analyst, AM Best (EU) Rating Services, notes: “When we consider the movement in ratings over the past year, there have been two main drivers for upgrades: operating performance – where companies have demonstrated improved performance metrics – or greater rating enhancement for group subsidiaries companies and changes in structure for a few European insurance groups.”

Most downgrades have been attributed to weakening balance sheets mainly through a reduction in Best's Capital Adequacy Ratio (BCAR), deteriorating operating performance and revision in the level of risk or drag given to a rating unit.

To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=294550.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Jalpa Thanky
Senior Financial Analyst
+31 20 308 5430
jalpa.thanky@ambest.com

Mahesh Mistry
Senior Director, Criteria
+44 207 397 0325
mahesh.mistry@ambest.com

Edem Kuenyehia
Director, Market Development & Communications
+44 20 7397 0280
edem.kuenyehia@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

Contacts

Jalpa Thanky
Senior Financial Analyst
+31 20 308 5430
jalpa.thanky@ambest.com

Mahesh Mistry
Senior Director, Criteria
+44 207 397 0325
mahesh.mistry@ambest.com

Edem Kuenyehia
Director, Market Development & Communications
+44 20 7397 0280
edem.kuenyehia@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com