KUALA LUMPUR, April 6 — AM Best has affirmed the Financial Strength Rating of A (excellent) and the Long-Term Issuer Credit Rating of ‘a’ of Energas Insurance (L) Limited (Energas) Malaysia.
The United States-based global credit rating agency in a statement said, the outlook of these ratings was stable.
These ratings reflect Energas’ balance sheet strength, which AM Best described as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The United States-based global credit rating agency in a statement said, the outlook of these ratings was stable.
These ratings reflect Energas’ balance sheet strength, which AM Best described as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
In addition, the ratings include a neutral impact from the company’s 100 per cent ownership by and integration with Petroliam Nasional Bhd (Petronas), which is ultimately owned by the Government of Malaysia.
The company’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, remains at the strongest level, supported by Energas’ low underwriting leverage, conservative investment strategy and strong liquidity.
Despite experiencing volatility in its claims ratio, the company’s underwriting results remain strong, as demonstrated by a five-year average combined ratio of 53 per cent (2014-2018).
This performance has been supported by low operating costs and favourable commission income.
Nonetheless, a prolonged downturn in the global oil market could lead to a reduction in capital spending by Energas’ parent company, Petronas. As a result, Energas may face a decline in premium volume, which could put pressure on the company’s future operating results.
Energas is a pure captive of Petronas. The company underwrites mainly on- and offshore engineering, as well as marine and property risks for its parent and affiliated companies.
— BERNAMA
The company’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, remains at the strongest level, supported by Energas’ low underwriting leverage, conservative investment strategy and strong liquidity.
Despite experiencing volatility in its claims ratio, the company’s underwriting results remain strong, as demonstrated by a five-year average combined ratio of 53 per cent (2014-2018).
This performance has been supported by low operating costs and favourable commission income.
Nonetheless, a prolonged downturn in the global oil market could lead to a reduction in capital spending by Energas’ parent company, Petronas. As a result, Energas may face a decline in premium volume, which could put pressure on the company’s future operating results.
Energas is a pure captive of Petronas. The company underwrites mainly on- and offshore engineering, as well as marine and property risks for its parent and affiliated companies.
— BERNAMA
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