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AM-Best
AM Best Affirms Credit Ratings of Ansvar Insurance Limited
May 14th, 2019

PRESS RELEASE FROM A.M. BEST

SINGAPORE–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Ansvar Insurance Limited (Ansvar) (Australia). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Ansvar’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Ansvar’s balance sheet strength is underpinned by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), reflecting a low level of retained underwriting risk. In addition, the company’s investment portfolio is conservative, being invested in cash and high-grade, fixed-interest securities. Offsetting factors in the balance sheet strength assessment include Ansvar’s modest capital base relative to the high gross policy limits on its property risks, as well as its high reinsurance dependence.

The company’s operating performance is adequate, demonstrated by a five-year average (2014-2018) return on equity of 5.1%. The combined ratio over the same period was 105.2%, due in part to the impact of natural catastrophes. However, results have improved following active restructuring of the underwriting portfolio, and technical profits have been reported in each of the past two years. Over the medium term, AM Best expects the combined ratio to remain below 100%, in line with 2017 and 2018, and exhibit a lower level of volatility.

Ansvar is a small niche insurer that underwrites general insurance products for its target customer groups in Australia (including faith-based, community service organizations, care, education, and property owners including heritage properties). Its core product offerings are property insurance, which is heavily reinsured, liability insurance (including financial lines insurance), and accident cover. Ansvar has a long-established presence in some niche segments. However, AM Best believes this advantage is offset somewhat by the company’s limited control over distribution, due to its reliance on the non-affiliated broker channel, as well as the strong competition for targeted business. AM Best is closely monitoring the company’s ability to translate its position in its niche markets into profitable underwriting results, and deterioration in performance could lead to negative rating actions.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Ansvar Insurance

5 months 2 weeks ago

We had such a great day at last weeks 'Reach Beyond Golf Day' that raises funds for a medical clinic in Bangladesh for the Rohingya refugees. Thank you to all the organisers for putting on such a great day and also for the passionate presentation to explain the amazing work that's been done with the funds raised. Pictured is our team Matt Abslom, Matthew J Fyfe, Jim Petdro and Richard Coloretti #golf #funding

Ansvar Insurance

6 months 2 weeks ago

We had to share these wonderful words from the Lighthouse Foundation's Michelle Michie, Philanthropy Manager. The Lighthouse Foundation were one of our 2016/ 2017 Community Education Program Grant Recipients.....

“We are immensely grateful for this support which has been crucial in life changing work which has helped so many young homeless girls get off to a healthy start with their newborns. I wish you could experience what I do, when I see these girls graduate to independent living with a strong attachment to their child. Without this help, so many of them would not have been able to manage, and would have given up their baby into the state care system.

Thank you for the partnership, and the tangible feeling that the Ansvar team truly cared about homeless children and young people, and that you had their back.”
Pictured (L to R) is Ansvar's CEO Warren Hutcheon, Lighthouse Foundation Founder Susan Barton, Lighthouse Foundation Philanthropy Manager Michelle Michie and Ansvar's COO Phil Gare.

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