AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of 'a+' (Excellent) of
The outlook of these Credit Ratings (ratings) is stable. These companies collectively are referred to as Orient or the group.
The ratings reflect Orient's balance sheet strength, which AM Best assesses as very strong, as well as its very strong operating performance, neutral business profile and appropriate enterprise risk management.
Orient's balance sheet strength is underpinned by its consolidated risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). The group's balance sheet strength is supported by prudent reserving practices and strong liquidity position. The majority of capital consumption in the BCAR model arises from the group's investment portfolio, which includes a material strategic equity holding that accounted for approximately 18% of total invested assets at year-end 2022 and introduces potential volatility in Orient's capital and surplus, owing to fair value movements. However, AM Best notes Orient's capital buffers to date have been sufficient to absorb these fluctuations. The company's remaining invested asset portfolio is relatively conservative, with a weighting toward cash and fixed-term bank deposits.
The group has a track record of very strong underwriting and operating profitability, which has been largely free of material volatility despite competitive conditions in the
Orient's business profile assessment reflects the group's leading market position in the
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.
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