AM Best has affirmed the A (excellent) financial strength rating of Brit Insurance Limited (BIL), at the same time as assigning the company an issuer credit rating.
The newly assigned issuer credit rating reflects AM Best's view of BIL's overall ability to meet its senior obligations, which are insurance policies, and hence both ratings are at the same level.
The ratings agency also affirmed the bbb issuer credit rating for Brit Insurance Holdings, as well as the ratings of its debt issues.
AM Best said the level of its issuer credit rating illustrated the principle of standard notching from the operating company's (BIL's) rating, and reflected the subordinated nature of the most senior obligations at the holding company level. The outlook for all ratings is stable.
The ratings of BIL reflected its strong prospective risk-adjusted capitalisation supported by improving diversification and the addition of lower risk lines of business, said AM Best.
AM Best said it expected BIL's combined ratio to deteriorate at year-end 2004 but believed that performance was still likely to be excellent for the diversified account that was now written.
These expectations include the estimated impact from Hurricane Charley discussed with BIL.
In addition, the strength of BIL's profile in the UK regions and London market was increasing, said the ratings agency.
