AM Best Affirms Credit Ratings of ERIKA Försäkringsaktiebolag (publ)

AMSTERDAM–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of ERIKA Försäkringsaktiebolag (publ) (Erika) (Sweden). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Erika’s balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

Erika’s strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), along with its conservative and liquid investment portfolio and prudent reserving collectively contribute to an overall balance sheet assessment of very strong by AM Best.

Additionally, consistently favourable earnings, including small investment gains, lead to an overall operating performance assessment of strong. The company’s strong operating performance track record is demonstrated by a five-year average combined ratio of 90.1% (2015-2019) and a five-year (2015-2019) average return on equity of 7.9%. The company reported a technical surplus in each of the past 14 years (2006-2019), signifying sound underwriting practices. AM Best expects Erika to remain profitable in 2020 despite an anticipated decline in gross written premiums due to COVID-19 and the subsequent global restrictions on travel.

Erika is the primary provider of travel insurance to people travelling worldwide on the various international education programmes offered by the Education First (EF) sphere. Erika and its ultimate parent, Universal Care S.à.r.l., are part of the wider EF sphere. AM Best assesses Erika’s business profile as limited due to its relatively small and concentrated portfolio, as well as its limited control over distribution and growth. The risks associated with the company’s small and concentrated portfolio are mitigated partially by its moderate product risk and good geographical diversification.

AM Best considers Erika’s ERM to be developed and appropriate for the company’s risk profile and operational scope.

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 analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Victoria Ohorodnyk
Senior Financial Analyst
+31 20 308 5432

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Mathilde Jakobsen
Director, Analytics
+31 20 308 5427

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644

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