AM Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating (ICR) of “a”, for Brit Insurance.
At the same time, the ratings agency has affirmed the ICR of “bbb” of parent company, Brit Insurance Holdings.
AM Best said earnings prospects for Brit in 2006 and 2007 are good. It also said that although the underlying trend in the combined ratio is upwards due to changes in the business mix and weakening market conditions in some classes of business written, it anticipates a combined ratio in the mid-90s in 2006, increasing to the high 90s in 2007.
It added that the diverse nature of the portfolio and a reduction in catastrophe exposure is likely to reduce potential future earnings volatility.
The agency said Brit benefits from "a strong business profile" as well as being a "diversified insurer."
The company is expected to increase gross premium income in 2006 by over 15% and see longer-term growth arising from the development of its distribution network in the UK regions.
