A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Sveriges Ångfartygs Assurans Förening (The Swedish Club) (the Club) (Sweden). The outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect the Club’s excellent risk-adjusted capitalisation and good, albeit volatile, performance track record. As a mutual association, the Club accepts some volatility in underwriting performance, but with positive operating performances reported on average in the past seven years, free reserves have increased from USD 105.9 million at year-end 2008 to USD 183.1 million at year-end 2015. Whilst recognising that large claims or substantial investment losses could have a significant impact on future operating performance, A.M. Best expects the Club’s risk-adjusted capitalisation to remain supportive of the ratings.

Following a loss before tax of USD 3 million in 2015, due to unrealised investment losses, A.M. Best expects the Club to return to profitability in 2016, supported by a small underwriting profit and good investment performance.

The Club has a profitable underwriting record with a five-year (2011-2015) average combined ratio of 99%, in spite of the combined ratio being approximately 110% in 2011 and 2012. Investment earnings also have been subject to some volatility, due in part to the high allocation to equity investments (approximately 20% of total investments).

The Club has a good niche business profile as a leading and diversified mutual marine insurer and a member of the International Group of P&I Clubs.

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.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.