Insurance group Royal & Sun-Alliance (R&SA) has retained its A+ (Superior) financial strength rating from AM Best.

But the rating agency assigned a negative outlook to the insurer over "concerns ab ...

Insurance group Royal & Sun-Alliance (R&SA) has retained its A+ (Superior) financial strength rating from AM Best.

But the rating agency assigned a negative outlook to the insurer over "concerns about the adequacy of the group's reserves, particularly with regard to asbestos and environmental (A&E) liabilities in the US, loss cost inflation and the group's inconsistent financial performance."

AM Best said, however, that despite its concerns, it recognised R&SA's strong capitalisation, financial flexibility and established position as a leading international property/casualty insurer.