Standard & Poor’s affirmed the BBB+ long-term counterparty credit and insurer financial strength ratings on Ecclesiastical Insurance Office (EIO). It said the outlook was stable.
It said the ratings for EIO reflected the company’s strong prospective capitalisation and strong niche business position, slightly offset by a good and improving operating performance.
Standard & Poor's credit analyst Nigel Bond, said: “Standard & Poor's expects EIO to maintain its much-improved underwriting performance over the next two to three years in the face of softening property rates.
Capitalization is expected to be strong, said the ratings agency and non-core business lines are expected to be reduced further.
Were EIO to record a stable and profitable underwriting performance in 2004 and 2005, allied to a restrained equity exposure, a higher rating may be considered, it said.
