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 positive.
The ratings reflect IIL's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The balance sheet strength is well-supported by IIL's risk-adjusted capitalisation, which is assessed at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). The company's total capital also was strengthened to
IIL's underwriting results over the most recent five-year period (FY2017 - FY2021) were consistently positive, and contributed to an average net combined ratio of under 40% and an average return on equity of 5%. In fiscal year 2021, the company's net underwriting profit increased by
IIL is a single-parent captive of
The positive outlooks reflect AM Best's expectation that IIL will continue to deliver consistently positive operating results, supported by continued premium growth with strong underwriting margins and favourable claims experience for its core lines of business.
Positive rating actions could occur if IIL continues to maintain its very strong balance sheet strength, while delivering more stable and sustainable underwriting results. Negative rating actions could occur if there is a substantial increase in losses caused by a material shift in risk appetite. In addition, any significant deterioration in
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive .
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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