LONDON–(BUSINESS WIRE)–A.M. Best has affirmed the Financial Strength Rating of A++(Superior) and the Long-Term Issuer Credit Rating of “aa+” of HSBEngineering Insurance Limited (HSBEIL) (United Kingdom). The outlookof these Credit Ratings (ratings) remains stable.
The ratings of HSBEIL reflect its excellent risk-adjustedcapitalisation, track record of strong underwriting performance, andestablished business profile as a specialist insurer of engineeringrisks in the U.K. and Canada. The ratings also reflect HSBEIL’sstrategic importance to its parent, The Hartford Steam BoilerInspection and Insurance Company, a member of The Hartford SteamBoiler Group, as its principal source of internationaldiversification.
HSBEIL’s risk-adjusted capitalisation remains at an excellent level. Thecompany has a track record of strong underwriting performance, evidencedby a five-year average combined ratio of 82% (2011 – 2015). Goodtechnical performance has been maintained during the first nine monthsof 2016. HSBEIL reported an excellent pre-tax profit of GBP 24.9 millionin 2015 (2014: GBP 24.2 million), which included realised gains from thecompany’s investments in government and corporate bonds.
The company has an established specialist business profile in the U.K.and Canada as an underwriter of niche engineering risks includingequipment breakdown, property damage, cyber and energy insurance.HSBEIL’s Canadian business is written through its wholly ownedsubsidiary, The Boiler Inspection and Insurance Company of Canada.HSBEIL’s profile also benefits from its wholly owned subsidiary, HSBEngineering Insurance Services Limited, which provides engineeringinspection services to HSBEIL’s clients.
This press release relates to Credit Ratings that have been publishedon A.M. Best’s website. For all rating information relating tothe release and pertinent disclosures, including details of the officeresponsible for issuing each of the individual ratings referenced inthis release, please see A.M. Best’s RecentRating Activity web page. For additional informationregarding the use and limitations of Credit Rating opinions, please view UnderstandingBest’s Credit Ratings.
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