AM Best has affirmed the financial strength rating of A- (excellent) for The Steamship Mutual Underwriting Association Bermuda. It said the rating outlook had been downgraded from stable to negative.
It said the rating reflected improving operating performance due to increased investment returns and excellent, although reduced, financial flexibility.
The ratings agency said a lack of material underwriting profit, despite substantial rate increases, continued to be the main offsetting factor.
The negative outlook reflects its concern over the maintenance of Steamship's excellent risk-adjusted capitalisation, should technical results not improve, said AM Best.
