AM Best Affirms Credit Ratings of ERIKA Försäkringsaktiebolag (publ)

AMSTERDAM–(BUSINESS WIRE)–#insurance–AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) 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 assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

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 strength assessment of very strong by AM Best.

The company has a track record of strong operating performance, supported by solid technical profitability and demonstrated by a five-year (2017-2021) average combined ratio and return of equity of 91.4% and 6.2%, respectively. The assessment also considers Erika’s stable and consistent earnings, with technical surplus reported in each of the past 16 years (2006-2021). AM Best expects Erika to remain profitable in 2022, despite some ongoing impact on gross written premium from pandemic-related travel limitations.

Erika is the primary provider of travel insurance to people travelling worldwide on the various international education programmes offered by Education First (EF). All business is sourced solely from EF tour operators, which limits Erika’s control over distribution and growth. Erika’s limited business profile assessment also reflects its relatively small portfolio, concentrated within one line of business. However, the risks associated with this concentration are mitigated partially by the company’s moderate product risk and good geographic diversification.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Morgane Hillebrandt
Financial Analyst
+31 20 308 5422
morgane.hillebrandt@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Dr. Mathilde Jakobsen
Director, Analytics
+31 20 308 5427
mathilde.jakobsen@ambest.com

Jeff Mango
Managing Director,
Strategy & Communications
+1 908 439 2200, ext. 5204
jeffrey.mango@ambest.com

Thank you for donating to DutchNews.nl.

We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.

Make a donation