AM Best Withdraws Credit Ratings of LocalTapiola General Mutual Insurance Company

AMSTERDAM–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” of LocalTapiola General Mutual Insurance Company (LocalTapiola) (Finland). The outlook of the FSR is stable, while the outlook of the Long-Term ICR is positive. Concurrently, AM Best has withdrawn these Credit Ratings (ratings) as the company has requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect LocalTapiola’s strategic importance to and integration within LocalTapiola Group (the group), which comprises LocalTapiola, 20 regional non-life insurance companies, LocalTapiola Life, and other service and investment-related companies. LocalTapiola plays a vital role within the wider group, writing certain non-life insurance lines of business and providing centralised group-steering operations.

The ratings are underpinned by the group’s consolidated balance sheet strength, which AM Best categorises as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The positive Long-Term ICR outlook reflects AM Best’s expectation that the group will continue to deliver robust operating profits while maintaining its strong competitive position in Finland.

The group’s consolidated balance sheet strength is underpinned by its risk-adjusted capitalisation, which remained at the strongest level as of year-end 2018, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects prospective risk-adjusted capitalisation to remain at the strongest level over the medium term, benefiting from the group’s substantial claims equalisation reserves and low underwriting leverage.

The group’s underwriting results have improved in recent years, supported by good earnings diversification between life and non-life technical profits, and overall operating earnings were supplemented by robust investment returns. The group generated an operating profit of EUR 200 million (as per AM Best calculations) in 2018, underpinned by a technical profit, despite reporting unrealised losses on its equity portfolio. The group generated positive results as of third-quarter 2019, reporting a net profit of EUR 283 million.

The group maintains a leading position in its domestic insurance market as Finland’s largest motor, and second-largest workers’ compensation insurer. The business profile assessment additionally benefits from LocalTapiola’s established and far-reaching distribution network that services its mutual members, involving collaboration with a number of high-profile domestic organisations. An offsetting factor to the assessment is the group’s limited geographical diversification, with its insurance portfolio concentrated exclusively within Finland.

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.


Jalpa Thanky, FIA

Senior Financial Analyst

+31 20 308 5430

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

Angela Yeo

Senior Director, Analytics

+31 20 308 5421

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

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