Ascot Group Limited's Ratings Affirmed by AM Best with Stability
Ascot Group Limited's Credit Ratings Affirmation
Recently, AM Best has confirmed the Financial Strength Ratings (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'a+' (Excellent) for Ascot Bermuda Limited along with several members of the Ascot Insurance U.S. Group, alongside a stable outlook for these ratings. This announcement highlights the robust financial health and stability of Ascot Group Limited.
Financial Strength and Rating Outlook
The reaffirmation of ratings for Ascot Bermuda and the Ascot U.S. units showcases a very strong balance sheet strength, combined with adequate operational performance and effective enterprise risk management. The backing from Canada Pension Plan Investment Board (CPP Investments), noted for its robust financial capabilities, further solidifies Ascot's strategic position and operational strength.
Significance of Ascot Bermuda and Ascot U.S.
Ascot Bermuda serves as the group's main (re)insurance platform located in Bermuda, while Ascot U.S. operates as a gateway to the U.S. excess & surplus lines markets. This dual structure has been critical for Ascot Group’s strategy, facilitating market access and enhancing their underwriting portfolio.
Operational Performance and Underwriting Strength
Ascot Group has shown a productive gross written premium of USD 3.8 billion in the current year, substantially supported by its U.S. and Bermuda operations. Historically, the group's focus has leaned towards U.S. property risks; however, the diversification from Ascot U.S. and Ascot Bermuda has greatly benefited their underwriting risk distribution.
Experience and Team Growth
The management team at Ascot consists of seasoned professionals, whose expertise has been pivotal as the firm expands. Their continuous adaptation and learning have helped Ascot maintain a strong presence in the insurance market.
Capital Management and Future Prospects
AM Best anticipates that Ascot will uphold its strong risk-adjusted capitalization, demonstrating excellent financial flexibility and stability driven by prudent management strategies. The capital injections from CPP Investments further enhance their support for growth-oriented initiatives and operational resilience.
Actual Underwriting Performance
With a consolidated five-year average combined ratio of 97.9% from 2019 to 2023, Ascot has demonstrated adequate underwriting success. Of particular note, Ascot’s Syndicate 1414 achieved an impressive average combined ratio of 90.8%, outperforming the Lloyd’s market. The improved underwriting performance in 2023 can be attributed to a favorable premium rate environment bolstered by controlled loss incidences.
Affirmed Ratings and Members
The following members of Ascot Insurance U.S. Group retain their FSR of A (Excellent) and Long-Term ICRs of 'a+' with a stable outlook:
- Ascot Insurance Company
- Ascot Specialty Insurance Company
- Ascot Surety & Casualty Company
- AmFed National Insurance Company
- AmFed Casualty Insurance Company
- AmFed Advantage Insurance Company
Frequently Asked Questions
What did AM Best affirm regarding Ascot Group Limited?
AM Best affirmed the Financial Strength Ratings and Long-Term Issuer Credit Ratings of Ascot Bermuda Limited and members of Ascot U.S. Group, indicating strong financial health.
What financial strength ratings did Ascot receive?
Ascot received a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of 'a+' (Excellent).
Who supports Ascot Group financially?
Canada Pension Plan Investment Board (CPP Investments) provides significant financial support to Ascot Group, reinforcing its operations and growth strategies.
What is Ascot’s business focus?
Ascot Group focuses on property and specialty (re)insurance with significant operations in both the U.S. and Bermuda markets.
How has Ascot performed in underwriting?
Ascot has shown adequate underwriting performance, evidenced by a strong combined ratio and overall growth in premium earnings.
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