AM Best has assigned a B++ (very good) financial strength rating to London General Insurance Company (LGI), with a stable outlook.
It said the rating reflected LGI's good business profile with a strong position in the UK, Irish and Dutch warranty and creditor protection sectors, strong operating performance and improving risk-adjusted capitalisation.
An offsetting factor in the rating was the company's limited business diversification, despite a good and growing geographical diversification, said AM Best.
Creditor and warranty insurer LGI distributes its products mainly through agreements with manufacturers, retailers and financial institutions offering single and multi-year policies.
AM Best said it expects an 8% growth at year-end 2004 and the combined ratio falling to below 80%, driven by a fall in operating expenses.
