Ratings Recap: Medical Ins. (Australia), Swiss Re Europe, Aseguradora Mundial

Standard & Poor’s Ratings Services has assigned its ‘BBB+’ rating on Medical Insurance Australia Pty Ltd., a national medical indemnity insurer and the largest in South Australia, with a stable outlook. “The rating, which represents good financial security, is the first assigned by Standard & Poor’s to a medical indemnity insurer in Australia,” stated S&P credit analyst Thomas Cherian. “The rating reflects the company’s strong business profile in South Australia, well-managed and proactive risk-management culture, conservative reinsurance, solid underwriting, and prudent approach to reserving and pricing.”

Following its affirmation of Swiss Re’s ratings (See previous article), A.M. Best Co. has also assigned a financial strength rating of ‘A+’ (Superior) and an issuer credit rating (ICR) of “aa” to Swiss Re Europe S.A. (SRE). The outlook on both ratings is stable.
“SRE (formerly Luxembourg European Reinsurance S.A.) is a subsidiary of Swiss Reinsurance Company which will gradually assume the assets, liabilities and ongoing business of Swiss Re’s various reinsurance subsidiaries domiciled in Europe, including reinsurance business written directly by the parent company through branches in Italy, Germany and France,” Best explained. The rating agency also said it “believes that SRE will have a very strong business profile and very strong capitalization once the restructuring, expected to take place in 2008 and the first half of 2009, has been fully completed. SRE also benefits from extensive reinsurance support from its parent company and A.M. Best has factored this into the ratings.”

A.M. Best Co. has affirmed the financial strength rating (FSR) of ‘A-‘ (Excellent) and assigned issuer credit ratings (ICR) of “a-” to Aseguradora Mundial, S.A., both with a stable outlook. “The ratings reflect Aseguradora Mundial S.A.’ s solid capitalization, historically favorable operating profitability and well established market presence in the Panama market,” best explained. “The company’ s favorable underwriting results and conservative investment portfolio have resulted in consistent profitable operating earnings and additions to surplus. The ratings also reflect the company’ s long standing market presence and brand recognition. In operation for nearly 40 years, Aseguradora Mundial, S.A. is one of the largest insurance companies in Panama, providing both life and non-life insurance products.”