A.M. Best Europe Rating Services has affirmed the
financial strength rating of B++ (Good) of InterGlobal Insurance Company
Limited (InterGlobal).
The rating reflects InterGlobal's improved and
sustainable level of both risk-adjusted capitalisation and financial
flexibility through a capital injection from a strong insurance organization.
An offsetting rating factor is the company's very
poor underwriting performance in recent years. Challenging conditions during
2009 and 2010 within the international private medical insurance market
together with a select number of poorly performing non-experience rated large
accounts in InterGlobal's portfolio are expected to lead to a peak underwriting
loss of around US$ 12 million in financial year 2011.
The management's actions of pruning loss-making
business, portfolio re-pricing and containing premiums expansion during
underwriting year 2011 are expected to produce positive technical results in
financial years 2012 and 2013. In 2011, a US$ 15 million capital injection and
a new whole account outward quota share reinsurance agreement served to
mitigate the impact of the negative operating performance on risk-adjusted capitalization
and boosted the latter to a solid level.
With so many insurers being downgraded by rating agencies, this is good
news.
International health insurance news: 7 February 2012
