Latest news with #Adequacy
Business Wire
9 hours ago
- Business
- Business Wire
AM Best Affirms Credit Ratings of ONIX Asigurari S.A.
AMSTERDAM--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of 'bb+' (Fair) of ONIX Asigurari S.A. (ONIX) (Romania). The outlook of these Credit Ratings (ratings) is stable. These ratings reflect ONIX's balance sheet strength, which AM Best assesses as adequate, as well as its strong operating performance, limited business profile and marginal enterprise risk management. ONIX's risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), was assessed at the strongest level at year-end 2024, underpinned by good internal capital generation. However, ONIX's small capital base and its lack of reinsurance protection increase the potential for volatility in risk-adjusted capitalisation, particularly considering its exposure to large surety risks. The company's limited financial flexibility is also considered an offsetting factor in its balance sheet strength assessment. Conversely, AM Best views positively ONIX's conservative investment portfolio, which is entirely made up of cash or term deposits. ONIX's operating performance is assessed at the strong level, reflecting its track record of good technical results since inception. For the five-year period ending in 2024, the company reported a weighted average combined ratio of 55.7%, as calculated by AM Best. Investment profits have improved in recent years, benefiting from the healthy interest rates environment. ONIX is a niche mono-line insurer that focuses on surety business in Italy and Spain. The company leverages its specialist expertise to compete against larger players. Solvency II requirements are embedded within ONIX's risk framework and its Solvency II regulatory capital adequacy ratio is monitored against risk appetite levels approved by its board. The company's risk management framework is evolving, and its risk management capabilities are considered by AM Best to be below the company's risk profile in some areas. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Business Wire
a day ago
- Business
- Business Wire
AM Best Affirms Credit Ratings of NLV Financial Corporation and Its Insurance Subsidiaries
OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'aa-' (Superior) of National Life Insurance Company (NLIC) (Montpelier, VT) and its wholly owned subsidiary, Life Insurance Company of the Southwest (LSW) (Addison, TX). Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of 'a' (Excellent) of the surplus notes of NLIC. Both companies are collectively known as National Life Group (NL Group) and are life insurance subsidiaries of NLV Financial Corporation (NLVF) (headquartered in Montpelier, VT), which is the intermediate holding company in the organization's mutual holding company structure. AM Best also has affirmed the Long-Term ICR and the Long-Term IRs of 'a-' (Excellent) of NLVF. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the Long-Term IRs.) The ratings reflect NL Group's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM). These ratings also indicate continued favorable trends in NL Group's balance sheet strength metrics, supported by its strongest level of risk-adjusted capitalization, which is projected to remain at that level, as measured by Best's Capital Adequacy Ratio (BCAR). Continued strategic management initiatives have resulted in further growth of the group's life/annuity sales, but sales for the industry could still be challenged to grow at a similar pace in the near term with economic uncertainty and its potential impact on the insurance industry's competitive landscape. NL Group's investment portfolio experienced some shifting during the year, with investment-grade corporate debt having the largest investment allocation decline, while mortgage-backed securities (MBSs) composed the biggest relative increase in investment allocation. NL Group's NAIC risk-based capital ratio remains strong and has stayed well above regulatory requirements over the past several years. However, there has been moderate continued volatility in NL Group's net income levels, driven by non-core earnings that reflect GAAP accounting reserving changes for indexed products, as well as short-term movement in equity markets and interest-rate curves. NL Group has a long history of successfully growing its agency force consisting of career and independent agents targeting life insurance and annuity product solutions. Recent profitable growth has led to consistent improvement in market share position through its niche products, such as its offerings in the K-12 educator and indexed universal life markets. Although the ERM assessment is assessed as appropriate, the program continues to positively reflect NL Group's well-established governance structure, culture and risk management controls, which are continuing to evolve and grow more sophisticated year over year. Additionally, NL Group launched a funding agreement-backed note (FABN) program in 2024, which completed its first issuance of $500 million in January 2025. The FABN program acts as a natural extension of the FHLB program, which leverages internal investments and finance expertise to contribute meaningfully to NL Group's bottom line. Most recently, NL Group recaptured all the assets of its captive reinsurer, Longhorn Reinsurance Company, resulting in a $19 million increase in assets in December 2024. AM Best will closely monitor the effects of these transactions on the whole organization. The following Long-Term IRs have been affirmed with stable outlooks: NLV Financial Corporation— -- 'a-' (Excellent) on $75 million 6.50% senior unsecured notes, due 2035 -- 'a-' (Excellent) on $200 million 7.50% senior unsecured notes, due 2033 National Life Insurance Company— -- 'a' (Excellent) on $200 million 10.50% surplus notes, due 2039 -- 'a' (Excellent) on $500 million 5.25% surplus notes, due 2068 This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
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Business Standard
24-06-2025
- Business
- Business Standard
Power minister urges states to plan nuclear projects to meet rising demand
Union Power Minister Manohar Lal on Tuesday urged states to include nuclear energy in their future power planning, as part of a broader push for a balanced and sustainable energy mix. As part of this planning, he highlighted the importance of a diversified power generation mix. 'While formulating their Resource Adequacy Plans, states should also ensure a balanced and diversified power generation mix. This should include the addition of nuclear generation capacity, with an aim to establish at least one nuclear power project in each state,' he said at the Regional Power Conference with eastern states and Union Territories held in Patna. He also highlighted the national goal of achieving 100 GW of nuclear power capacity by 2047. According to a statement by the Department of Atomic Energy in 2024, India had a nuclear power capacity of 8.18 GW across 24 reactors. The minister also called for coordinated efforts between the Centre and states to meet India's rising power demands and strengthen the power system. Lal pointed out that peak electricity demand had already reached 250 GW in May 2024 and 242 GW so far in 2025, with projections showing a further increase to 270 GW by the end of the year. 'India's peak electricity demand is projected to reach 446 GW by 2034–35 and meeting this sustainably requires proactive planning and continued coordination between the Centre, states, and other stakeholders,' he said. Focus on renewable energy Besides nuclear power, the minister also underlined the need to expand renewable energy and storage. 'States should promote renewable energy coupled with energy storage systems in order to ensure reliability of supply of power,' he said. India's renewable share in the energy mix has risen from 32 per cent in 2014 to 49 per cent in April 2025, he added. Need for better efficiency As for efficiency and financial sustainability, the minister said that the distribution sector is the most critical link in the power sector value chain; however, it is marred by poor tariff structures, sub-optimal billing and collection, and delayed payments of dues and subsidies by government departments. 'The power sector requires an estimated ₹42 lakh crore by 2032,' he said, while stating that financial losses in distribution add to costs for consumers and degrade service quality. 'States should engage with the Electricity Regulatory Commissions for cost-reflective tariffs and timely issuance of tariff and true-up orders,' he added. He further asked the states to complete prepaid smart meter installation in all government establishments, including colonies, by August 2025, and for commercial, industrial and high-load consumers by November 2025. 'The pre-paid smart meters are a way to ensure timely release of government department dues,' he noted.
Business Wire
23-06-2025
- Business
- Business Wire
AM Best Assigns Credit Ratings to JMalucelli Travelers Seguros SA
BUSINESS WIRE)-- AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of 'a-' (Excellent) to JMalucelli Travelers Seguros SA (JMT) (Colombia). The outlook assigned to the Credit Ratings (ratings) is stable. The ratings reflect JMT's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also consider support from JMT's ultimate parent, Liberty Mutual Holding Company Inc. (Liberty Mutual). JMT is a niche provider focused on underwriting surety bonds, with a limited number of other associated adjacent lines, in various business sectors, exclusively in Colombia. The company leverages its long-term producer partnerships across multiple distribution sources, as well as Liberty Mutual's deep experience and expertise in writing surety worldwide. JMT's balance sheet strength is supported by its strongest level of risk-adjusted capitalization, as measured by Best's Credit Adequacy Ratio (BCAR). The balance sheet strength assessment considers JMT's solid reinsurance program with Liberty Mutual, as well as a conservative investment philosophy. The business JMT is writing has shown consistent profitability historically, while underwriting income is expected to be augmented by investment returns. The company's risk management frameworks and capabilities are considered appropriate and aligned with its stated risk profile, along with guidance and oversight by Liberty Mutual. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Yahoo
20-06-2025
- Business
- Yahoo
AM Best Downgrades Issuer Credit Rating of Safety Insurance Group, Inc. and Its Key Subsidiaries
OLDWICK, N.J., June 20, 2025--(BUSINESS WIRE)--AM Best has downgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to "a" (Excellent) from "a+" (Excellent) and affirmed the Financial Strength Rating of A (Excellent) of Safety Insurance Company, Safety Indemnity Insurance Company, Safety Property and Casualty Insurance Company and Safety Northeast Insurance Company. The outlook of the Long-Term ICRs has been revised to stable from negative while the outlook of the FSR is stable. Collectively, these companies are referred to as Safety Group. At the same time, AM Best has downgraded the Long-Term ICR to "bbb" (Good) from "bbb+" (Good) of Safety Insurance Group, Inc. (Delaware) [NASDAQ/GS: SAFT], the publicly traded parent of Safety. The outlook of the Long-Term ICR has been revised to stable from negative. All companies are domiciled in Boston, MA, except where specified. The Credit Ratings (ratings) reflect Safety's balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The Long-Term ICR downgrades reflect a trend of deterioration in Safety Group's risk-adjusted capitalization position since year-end 2021, as measured by Best's Capital Adequacy Ratio (BCAR). This reduction is attributed to the group's absolute surplus level declining while net written premium, net reserves and Safety Group's probable maximum loss estimate have all increased since. Inflationary trends and rate increases have also had a significant impact. Ultimately, these factors have led to Safety Group's risk-adjusted capitalization position declining to the strong level following 1Q 2025, down from the strongest level at year-end YE 2021. Company management has indicated its strategic goal is to remain within the strong range. AM Best assesses Safety Group's operating performance as strong due to five-year average pretax and total returns on revenue and equity that compare favorably with AM Best's private passenger and homeowners' composite averages. The group's five-year average combined ratio remains below breakeven and outperforms the composites as well. AM Best assesses Safety Group's business profile as neutral due to its consistent position as a top five carrier in the personal auto, commercial auto and homeowners' market in Massachusetts with a modestly diverse product offering. AM Best also views Safety Group's ERM as appropriate, supported by its comprehensive risk management framework that is well-documented in its Own Risk Solvency Assessment report. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Justin Aimone Financial Analyst +1 908 882 1595 Christopher Draghi Director +1 908 882 1749 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
