Ansvar restructuring could be positive for rating

Rating agency AM Best has placed the A- financial strength rating of Ansvar Insurance Company under review with positive implications. Ansvar is a subsidiary of Ecclesiastical Insurance Office (EIO).

The agency said the action follows EIO’s announcement of its intention to change Ansvar’s legal structure, subject to regulatory and court approval. From 1 January 2011, Ansvar is expected to operate as a division of EIO under its existing brand rather than as a separate subsidiary. The purpose of the reorganisation is to allow the group to manage its capital more efficiently, to provide Ansvar with access to EIO’s main reinsurance programme and to maximise operating efficiencies within the group.

AM Best anticipates resolving the under review status when the proposed change to the legal structure of the group receives regulatory and court approval.