AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of 'a' of
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect EID's balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
EID's risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), is categorised as strongest, and AM Best expects it to remain at the strongest level over the medium term. An offsetting rating factor in the balance sheet assessment is EID's reliance on reinsurance to write large risks; however, the risks associated with this reliance are mitigated partly by long-standing relationships with reinsurers of excellent credit quality.
EID has a track record of strong operating profits, evidenced by a five-year average combined ratio of 55.5% (2015-2019). In 2019, EID produced a pre-tax profit of
EID is well-integrated within the
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
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 media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.
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