AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of 'a' of
At the same time, AM Best has affirmed the Long-Term Issue Credit Rating of 'bbb' on
The ratings reflect EIO's balance sheet strength, which AM Best categorises 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 at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), supported by good internal capital generation. The company maintains a good liquidity profile. Although a relatively high allocation to equity investments exposes EIO's risk-adjusted capitalisation to financial market volatility, capital buffers are considered sufficient to absorb financial market shocks.
EIO has a track record of adequate operating profits, as demonstrated by a five year (2014-2019) weighted average return on equity of 8.7%, with technical results supported by generally positive investment earnings. In 2019, the company reported a pre-tax profit of
EIO has a specialist business profile offering insurance products and risk management services in the faith, heritage, charity, education and real estate markets, where it maintains a strong competitive position. Offsetting rating factors include the geographical concentration of the company's insurance portfolio in the
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AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in
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