A.M. Best Rating Update
Thursday, 15 December 2011 | 11:00
Specialist insurance rating agency A.M. Best has this week re-affirmed the financial strength rating of West of England at A- (“Excellent”), negative outlook. The rating acknowledges “WOE’s excellent risk-adjusted capitalisation and its legal right to make supplementary calls to its members, as well as its good business profile” Best expect the Club to show an underwriting loss of US$15 million at 20 February 2012 compared with US$37 million for the previous year and that the investment environment will remain volatile.
Despite an adverse economic environment and continuing uncertainty in investment markets the Club’s invested assets have remained at substantially the same level as at the start of the financial year but with a significantly lower allocation to equities. Claims in prior policy years remain stable and Members’ incurred claims for the current year are at reduced levels consistent with the measures taken at the last renewal to reduce the Club’s overall exposure. The Club maintains its key objective of improving its technical result and strengthening its capital base over time in a difficult trading environment for both shipping and the P&I industry.
Source: West P&I Club
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