Ecclesiastical maintains its A- rating

Credit rating agency Standard & Poor’s (S&P) has maintained Ecclesiastical Insurance Office’s A- rating and confirmed the company has a stable outlook.

The rating reflects the company’s strong capital position and niche competitive advantage, according to S&P.

A report from the rating agency said: “The company has a strong market presence in its core business of insuring churches, independent schools, charities, and heritage properties. Ecclesiastical has, by and large, been able to underwrite profitably in these sectors and the high retention rates it consistently records suggest a competitive advantage over its peers.”

The news comes following Ecclesiastical posting strong results with a return to profit. The specialist insurer posted  pre-tax profits of £37.8m for 2012 compared to a £10.5m loss the previous year.

Ecclesiastical group chief financial officer Mark Hews (pictured) said: “This is a very positive result for our customers and our brokers. It demonstrates the financial strength of the Group and underlines the strong position Ecclesiastical has in its core specialist markets.

 “S&P have noted the steps we are taking to improve our underwriting profitability and, similarly to us, expect the decisions we’ve made over the last few years to deliver tangible improvements in our operating performance. These decisions have already allowed us to sharpen our focus on our core sectors where we have a clear competitive advantage and can deliver sustainable returns.

“Ecclesiastical will continue to develop our expertise as a specialist and concentrate on delivering real value to our customers. This will bolster our position in our core markets and ensure the continued confidence of all stakeholders in our business.”