AM Best has revised AXA Mansard Insurance Plc outlook to stable from negative and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of 'bbb-' of AXA in the insurance industry. AM Best is a global credit rating agency with over 100 years history of providing quantitative and qualitative assessment for Insurance companies, with its 'Best's Credit Rating Methodology. According to the statement from AXA Mansard, the ratings reflect AXA Mansard's balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The ratings also reflect rating enhancement from the AXA group.

The revision in outlooks to stable reflects AM Best's expectation that AXA Mansard's risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), will remain at the strongest level over the medium term, benefiting from the de-risking of its investment portfolio, and that the company's underwriting performance will gradually improve, it said.

It said AXA Mansard's balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by BCAR. Capital consumption is significantly influenced by the company's real estate holdings, which in 2018 equated to 73% of its capital and surplus. However, AM Best expects that AXA Mansard will significantly reduce its allocation to real estate over the medium term, which would have a positive impact on its future BCAR.

© Pakistan Press International, source Asianet-Pakistan