AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of 'a' of EyeMed Insurance Company (EIC) (Phoenix, AZ).
The outlook of these Credit Ratings (ratings) is stable. EIC, along with EyeMed Vision Care LLC, are subsidiaries of Luxottica Group S.p.A., and these companies are the North America-based entities of EssilorLuxottica S.A., the ultimate parent.
The ratings reflect EIC's balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings consider EIC's strategic importance to EssilorLuxottica S.A., as well as the comprehensive operational support provided by its parent company.
EIC's balance sheet strength is underpinned by risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), which is enhanced by a highly liquid investment portfolio and solid liquidity measures. The ratings also take into consideration the dependence on reinsurance programs and the history of dividend payments.
The company reported consistently favorable operating performance up to 2018 as a captive insurance company. Since converting to insurance company in 2018, EIC has reported good operating performance, evidenced by premium growth and solid operating return measures. During the most recent nine-month period in 2019, EIC reported strong premium growth, as well as margin expansion, a trend that is expected to continue in the near term. The ratings also reflect the organization's established market presence and solid overall market share in the vision care space.
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 media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.
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