AM Best affirmed the A (excellent) financial strength rating of Brit Insurance Limited (BIL) (United Kingdom) and removed the rating from review based on BIL's August underwriting plans. The outlook is now stable.
At the same time, AM Best has withdrawn the financial strength rating of A- (Excellent) of Brit Insurance (UK) Limited (formerly Professional Risks Insurance Limited) and assigned it an NR-3 (Rating Procedure Inapplicable), following the cessation of underwriting.
The rating action on BIL reflects the approval by the board of directors of both BIL and Brit Insurance (UK) Limited (Brit UK) in August to stop loss contracts allowing access to capital between the two companies.
The rating was placed under review with negative implications when BIL's parent company, Brit Insurance Holdings PLC, announced a potential share offer for Professional Risks Insurance.
AM Best said: "BIL's financial strength rating reflects the company's excellent capitalisation and performance prospects, its improved underwriting diversification and raised business profile. An offsetting factor is the company's growth plans, which include the risks inherent in commencing underwriting several new classes of business.
AM Best added: "BIL is expected to maintain its excellent risk-based capitalisation, despite an anticipated increase in net written premium for 2003 of nearly 240% to approximately £368 million ($590 million) and a further planned increase of approximately 60% in 2004."
