AM Best Affirms Credit Ratings of Euro Accident Livförsäkring AB
02 Mayo 2024 - 9:55AM
Business Wire
AM Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-”
(Excellent) of Euro Accident Livf�rsäkring AB (Euro Accident)
(Sweden). The outlook of these Credit Ratings (ratings) is stable.
The ultimate parent of Euro Accident is Impilo AB, a Swedish
investment firm focused on Nordic healthcare investments.
The ratings reflect Euro Accident’s balance sheet strength,
which AM Best assesses as strong, as well as its adequate operating
performance, neutral business profile and appropriate enterprise
risk management (ERM).
Euro Accident’s balance sheet strength assessment of strong is
supported by its strongest level of risk-adjusted capitalisation,
as measured by Best’s Capital Adequacy Ratio (BCAR), along with its
conservative and liquid investment portfolio, prudent reserving and
robust reinsurance programme. AM Best expects the company’s
risk-adjusted capitalisation to remain at the strongest level
prospectively, underpinned by good earnings generation; this also
considers projected dividend payments to service the debt held by
one of the insurer’s intermediate parent holding companies.
Euro Accident has delivered robust results since 2019, which was
its first full year of operation in its current capacity as a
Sweden-domiciled insurance company. Technical performance on some
lines of business were adversely affected in 2022 by inflation and
in 2023 by an increase in claims frequency. However, overall
technical results remained robust in both years. The company
reported significant investment losses in 2022 driven by market
volatility. Investment performance improved in 2023, leading to
significant non-technical profits.
Euro Accident was first established as a Swedish agency in 1996
and through its role as an agency and later as an insurer, it has a
long-established position as a provider of life and health
insurance in its core market of Sweden, where it benefits from
strong broker and partner relationships. Additionally, the company
expanded to Denmark in 2018 and to Norway in 2020 and anticipates
material growth in these markets. The expansion is expected to
benefit the company’s business profile by increasing its geographic
diversification. However, it does carry with it a moderate level of
operational and execution risk.
AM Best considers Euro Accident’s ERM to be developed and
appropriate for the company’s risk profile and operational
scope.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best’s Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specialising in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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Juan A. Villaescusa Prades Financial Analyst
+31 20 808 1162 juan.villaescusa@ambest.com Mathilde
Jakobsen Senior Director, Analytics +31 20 808
3118 mathilde.jakobsen@ambest.com Christopher Sharkey
Associate Director, Public Relations +1 908 882 2310
christopher.sharkey@ambest.com Al Slavin Senior Public
Relations Specialist +1 908 882 2318
al.slavin@ambest.com