AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of 'bbb' (Good) of
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect BMI'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 ratings also factor in a neutral impact from the company's majority ownership by the
BMI's balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level at year-end 2021 and is expected to remain at this level over the near to medium term, as measured by Best's Capital Adequacy Ratio (BCAR). Capital adequacy remains sufficient to support planned business growth despite limited capital generation over recent years. AM Best views BMI's investment portfolio to be of moderate risk with the majority of it allocated toward term deposits and the remainder held in non-rated corporate bonds, equity investments including a joint venture, and real estate. BMI maintains a basic approach to asset liability management despite some exposure to longer-duration products within its business mix. AM Best views the company as having moderate reinsurance dependence to support its underwriting of large limit risks and help manage catastrophe exposure accumulation. Reinsurance counterparty risk is mitigated by the use of a reinsurance panel of good credit quality.
AM Best assesses the company's operating performance as adequate, as demonstrated by its five-year average return-on-equity ratio of 8.9% and combined ratio of 97.8% (2017-2021). During the year-to-date period ending
AM Best views BMI's business profile as neutral. BMI is ranked as the fourth-largest non-life insurer in
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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