The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the Australian financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA’s capital standards and related capital requirements are designed to ensure that entities hold enough capital to be able to carry on their business.
As at 31 December 2015, Ansvar held 2.89 times the level of capital required by APRA and its capital ratio was above the industry average.
Ansvar has a financial strength and issuer rating of “Excellent” or A- from A.M. Best and the rating is viewed as stable. A.M. Best characterises the financial strength rating of A- as “Assigned to companies that have, in our opinion, an excellent ability to meet their ongoing insurance obligations”. The rating was reaffirmed on 24 March 2016.
The following sets out the scales for A.M. Best ratings showing Ansvar has the second strongest available rating out of ten on the A.M. Best scale:
About A.M. Best
A.M. Best is a worldwide insurance-rating and information agency with more than 100 years of history. It is the largest and longest-established company devoted to issuing in-depth reports and financial strength ratings about insurance organisations.
Its flagship publication and database, Best’s Insurance Reports, offers extensive coverage of insurers and reinsurers. Many other Australian insurers have A.M. Best ratings, as well as some of the largest global reinsurers.
In May 2015, Standard & Poor’s Ratings Services affirmed its “A-” insurer financial strength rating of Ansvar’s parent, Ecclesiastical Insurance Office plc.
On 23 March 2016, A.M. Best affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a” for Ansvar’s parent company, Ecclesiastical Insurance Office plc. The outlook for the ratings remain stable.
At 31 December 2015, Ansvar’s net assets/capital was $78.6 million. The company’s capital position has remained strong even though, like other insurers, it has experienced significant claims in relation to catastrophic events over the past 10 years, particularly in 2011. We provide our customers with visibility of our strong financial position in our Annual Financial Statements.