AM Best Affirms Credit Ratings of Ørsted Insurance A/S

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 Ørsted Insurance A/S (ORIAS) (Denmark). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect ORIAS’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

ORIAS is the captive insurer for Ørsted A/S (Ørsted), a global sustainable energy group headquartered in Denmark.

ORIAS’ very strong balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which is at the strongest assessment level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company also benefits from a very conservative and liquid investment portfolio. Offsetting factors in the assessment include the company’s high dependence on reinsurance, although the risks associated with this dependence are mitigated partially by ORIAS’ longstanding relationship with its highly rated reinsurance panel.

The adequate operating performance assessment reflects ORIAS’ track record of good but volatile underwriting results, as demonstrated by a 10-year weighted average combined ratio of 81.3% (2013-2022). In 2022, ORIAS reported a net loss of DKK 132.5 million (USD 19 million), due to unfavourable claims experience in the year combined with adverse reserve developments on prior year claims (2021: DKK 28.3 million [USD 4.3 million] profit, boosted by reserve releases). Underwriting performance is expected to improve in 2023, benefiting from higher premium income due to new construction projects underwritten by the captive, as well as insurance of a larger share of Ørsted’s operational renewables assets. Prospective performance is subject to volatility due to the company’s exposure to potentially large property losses, although moderated on a net basis by the captive’s comprehensive reinsurance programme.

As a captive monoline insurer providing commercial property and construction insurance covers for Ørsted, ORIAS’ underwriting portfolio is concentrated by line of business but well-diversified geographically. ORIAS’ neutral business profile assessment also reflects its strategic importance to Ørsted.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit

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

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Andrea Porta
Financial Analyst
+31 20 308 5428

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310

Dr. Mathilde Jakobsen
Senior Director, Analytics
+31 20 308 5427

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318

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