11 Insurers See Ratings Updates
Insurance Networking Ratings Corner, November 13, 2012
Oriental’s management is committed to improving its underwriting performance. Oriental has revised pricing for its motor and fire business to improve profitability. Profitable segments in the company’s motor and health business have been identified, while strategies in unprofitable segments have been revised through tighter underwriting controls and non-renewal of business with unviable pricing. Oriental also coordinates with other Public Sector Undertakings (PSU) insurers in controlling claim costs of health business through standardization of charges in identified hospital networks.
Moody's has withdrawn the ratings on the following:
• Syncora Holdings Ltd. – C (hyb) (Pref. Stock Non-cumulative (Foreign) Shares)
• Syncora Guarantee Inc. – Ca (IFSR), Under Review for Upgrade
• Syncora Guarantee (U.K.) Ltd. – Ca (IFSR), Developing Outlook
• Twin Reefs Pass-Through Trust – C (hyb) (Contingent Capital Securities)
Moody's has withdrawn the rating, because it believes it has insufficient or otherwise inadequate information to support the maintenance of the rating. Syncora Holdings Ltd. is a holding company whose primary operating subsidiary, Syncora Guarantee Inc., provides credit enhancement and protection products to the public finance and structured finance markets. Syncora Guarantee has not written new business since 2008.
A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of B++ (Good) and issuer credit rating of “bbb+” of United India Insurance Co. Ltd. (United India). The ratings reflect United India’s solid risk-adjusted capitalization, improved underwriting performance and strong business profile in the Indian non-life insurance market.
United India’s risk-based capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remained solid in fiscal year 2011 to 2012, despite the lower capital and surplus balance attributed to the deteriorating local investment market. The company’s capitalization level is expected to be adequate to support its forecasted business growth in the near term.
Underwriting performance has improved in fiscal year 2011 to 2012, as evidenced by the lower loss ratio and expense ratio in the year. A substantial premium rate increase in motor third-party liability insurance helped to bring down the loss ratio of the motor line. Better claim experience also has been observed in the other major portfolio—health—after United India took various initiatives in claims management. The expense ratio also came down in fiscal year 2011 to 2012, with higher employee productivity and a larger premium base. Overall, the company’s combined ratio was lowered by 16.5 percent, from its peak of 133.4 percent in fiscal year 2010 to 2011.
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