AM Best Affirms Credit Ratings of Protector Forsikring ASA
11 Julio 2024 - 10:33AM
Business Wire
AM Best has affirmed the Financial Strength Rating of B++
(Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of
Protector Forsikring ASA (Protector) (Norway). The outlook of these
Credit Ratings (ratings) is positive.
The ratings reflect Protector’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).
The positive outlook reflects the expectation that the company
will maintain a trend of strong earnings generation underpinned by
robust technical and investment income. Protector recorded strong
technical performance in 2023, demonstrated by a combined ratio of
87.7% (net/net IFRS 17) (87.9% in 2022), as calculated by AM Best.
The company’s five-year weighted average combined ratio
(2018-2022), recorded under IFRS 4, stood at 93%. The company
recorded a return on equity (ROE) of 36.4% in 2023 (37.4% in 2022),
as calculated by AM Best. Protector’s five-year weighted average
ROE (2018-2022), recorded under IFRS 4, was 20.1%.
AM Best expects Protector’s risk-adjusted capitalisation, as
measured by Best’s Capital Adequacy Ratio (BCAR), to be maintained
at least at the current assessed level of very strong, underpinned
by strong earnings generation, which should adequately support its
growth plans. The company’s balance sheet strength also benefits
from a good liquidity profile and prudent reserving practices. A
partially offsetting factor is the company’s moderate reinsurance
dependence, although the associated risk is mitigated somewhat by a
well-diversified panel of reinsurance counterparties of good credit
quality. Additionally, Protector’s relatively high allocation to
equities and non-rated bonds expose it to elevated investment risk,
which increases the potential for volatility in risk-adjusted
capitalisation.
Established in 2004, Protector benefits from its relatively
strong foothold and expertise in Norway’s commercial and public
insurance sector. The company has grown rapidly in recent years, as
evidenced by gross written premiums increasing to NOK 10.4 billion
(USD 1.02 billion) in 2023 from NOK 1.5 billion (USD 256 million)
in 2012. Protector’s entrance into new markets, including the
United Kingdom in 2015, has improved its geographic
diversification.
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.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240711312146/en/
Konstantin Langowski Senior Financial Analyst +31 20 808
2994 konstantin.langowski@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Mathilde Jakobsen Senior Director, Analytics
+31 20 808 3118 mathilde.jakobsen@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com