AM Best Affirms Credit Ratings of Ecclesiastical Insurance Office plc

LONDON--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Ecclesiastical Insurance Office plc (EIO) (United Kingdom). At the same time, AM Best has affirmed the Long-Term Issue Credit Rating of “bbb” (Good) on GBP 106.5 million, 8.625%, non-cumulative irredeemable preference shares issued by EIO. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect EIO’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

EIO’s balance sheet strength assessment is underpinned by risk-adjusted capitalisation that AM Best expects to remain comfortably at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Although EIO’s conservative reserving practices support its balance sheet strength assessment, the company has exposure to certain classes that have exhibited volatility in recent years. EIO maintains a relatively high allocation to equity investments, which heightens the sensitivity of the company’s risk-adjusted capitalisation to financial market volatility; however, capital buffers are expected to remain sufficient to absorb financial market shocks.

EIO has a track record of adequate operating performance, generating post-tax profits in nine out of the last 10 years (2016-2025). Active portfolio management has supported robust underwriting performance in recent years. In 2025, EIO reported a net/net combined ratio of 96.9%, representing a deterioration of 1.3 percentage points compared with 2024, as calculated by AM Best, impacted by a one-off cost during the year. Investment returns have been subject to financial market volatility in recent years, demonstrated by a net investment return ratio (including gains) that has fluctuated between -5.6% and 9.2% over the last five years (2021-2025). Nevertheless, over the longer term, investment returns have positively contributed to overall profitability.

EIO has a well-established and unique position in the United Kingdom, offering insurance products and risk management services in the faith, heritage, charity and educational sectors. While reported insurance services revenue is largely sourced from the United Kingdom, the company benefits from some geographic diversification through subsidiaries in Australia, Canada and Ireland. AM Best expects modest growth of insurance services revenue in the coming years to be supported by prudent underwriting practices.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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

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