AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of 'a-' (Excellent) of
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect HLIA's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
HLIA's very strong balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). The company maintained low underwriting leverage and mild growth in capital and surplus (C&S) over the past five fiscal years. Offsetting factors include its modest C&S level, moderate dependency on reinsurance and investment concentration in real estate properties.
HLIA's strong operating performance is supported by its better-than-average underwriting profitability. The company reported double-digit growth in gross premium written in the fiscal year that ended
The company's business profile is assessed as limited. HLIA's presence in
Negative rating actions could occur if HLIA experiences sustained negative operating performance below the market average; for example, due to consistently material lower investment yields or a diminished underwriting margin. Negative rating actions also could occur if there is significant deterioration in the company's risk-adjusted capitalisation. A deterioration in the credit profile of HLIA's parent companies,
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 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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