Both AM Best and Standard & Poor’s (S&P) have affirmed their the ratings for Bermuda-based Alea Group.
AM Best affirmed the A- (excellent) financial strength rating of Alea’s insurance and reinsurance operating subsidiaries. It said the outlook on the ratings remained stable.
AM Best said the affirmation was based in the group’s excellent level of consolidated risk-based capital and improving market profile.
Alea’s strong underwriting performance was partially offset by uncertainties regarding future claims inflation for its US casualty book of business, which could negatively impact future earnings, said the ratings agency.
S&P said it had affirmed the A- long-term counterparty credit insurance and financial strength rating on Alea and its subsidiaries.
At the same time it said it had affirmed the BBB- long-term counterparty credit and senior secured debt ratings on the Alea Group, with a stable outlook.
“The ratings reflect the group's very strong capitalization, strong competitive position and management, and improving operating performance,” said S&P credit analyst Simon Marshall.
These factors are partly offset by the group's marginal historical operating performance and rapid growth in liability business, which inherently carries greater pricing uncertainty, the company added.
