AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Associated Electric & Gas Insurance Services Limited (AEGIS) (Hamilton, Bermuda). The outlook of the Credit Ratings (ratings) is stable.
The ratings reflect AEGIS’ balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
AEGIS’ strategy emphasizes risk diversification and a relatively conservative approach to capital preservation. This diversification is achieved through the successful combination of its energy mutual operations in the United States with Lloyd’s Syndicate 1225 in uncorrelated lines of business. These favorable rating factors partially are offset by the periodic unfavorable loss experience in certain lines of business over time. Management continues to focus on the company’s operating performance by improving its risk management strategies, including premium rate adjustments, continued refinement of its underwriting