LONDON--(BUSINESS WIRE)-- A.M. Best Europe – Rating Services Limited has affirmed and removed from under review with negative implications the financial strength rating of B+ (Good) and the issuer credit rating of “bbb-” of Adamjee Insurance Company Limited (Adamjee) (Pakistan). The outlook assigned to both ratings is stable.
A.M. Best had placed the ratings of Adamjee under review with negative implications pending confirmation that catastrophe excess of loss cover was increased to sufficiently protect its capital base.
Adamjee has since purchased an additional two layers of catastrophe excess of loss cover, raising its limit to PKR 12.3 billion (USD 128 million). Some spillover is still expected in a 1/250 year event; however, in A.M. Best’s opinion, Adamjee has sufficient capital to absorb such an event.
A.M. Best believes further negative rating actions are likely in the event that Adamjee does not maintain sufficient reinsurance cover or there are further risk management weaknesses. Positive rating actions are considered to be unlikely in the near term.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilised include: “Understanding Universal BCAR”; “Catastrophe Analysis in A.M. Best Ratings”; and “Evaluating Country Risk”. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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A.M. Best Company, Inc.
Dean Portelli, +(44) 20 7397 0267
Senior Financial Analyst
Mahesh Mistry, +(44) 20 7397 0325
Rachelle Morrow, +(1) 908 439 2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
Source: A.M. Best Company, Inc.