AMSTERDAM--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to AmTrust Assicurazioni S.p.A. (AmTrust Assicurazioni) (Italy). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect AmTrust Assicurazioni’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings also consider, in the form of rating lift, AM Best’s expectation that the AmTrust group will provide financial support to the company if needed. In addition, the group provides reinsurance support to AmTrust Assicurazioni.
AmTrust Assicurazioni’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is categorised as strongest. The balance sheet strength assessment also reflects the company’s liquid and diversified investment portfolio, which is of high credit quality. An offsetting factor is the company’s high level of reinsurance dependence. However, the risks associated with this reinsurance dependence are partially mitigated by the excellent credit quality of its reinsurance panel and the collateral held against unrated reinsurance recoverables.
For 2020, the company reported a pre-tax loss of EUR 0.5 million and a combined ratio of 100.4%. AmTrust Assicurazioni’s book of business was transferred from other AmTrust group entities in July 2020 so the results do not reflect a full year’s premium income. Taking into account the historical performance of the transferred book of business, AM Best expects the company’s prospective performance to be supportive of an adequate assessment, with earnings dominated by investment returns.
AmTrust Assicurazioni primarily underwrites medical professional liability insurance (MPLI) business in Italy. Gross written premiums for 2020 amounted to EUR 162 million and are expected to reach over EUR 240 million in 2021, once a full year’s premium is reflected. The company has a strong market position in the Italian MPLI market, where it leverages its specialist expertise and has a market share of approximately 40%.
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