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MS Reinsurance Gets Ratings Upgrades From AM Best and S&P

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MS Reinsurance, the reinsurance subsidiary of MS&AD Insurance Group Holdings, has received rating upgrades from AM Best and S&P Global Ratings.

On April 26, 2024, AM Best announced it had upgraded the company’s financial strength rating to “A+” (Superior) from “A” (Excellent) and the long-term issuer credit rating to “aa-” (Superior) from “a” (Excellent).

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On April 29, 2024, S&P announced it had raised the company’s financial strength rating to “A+” from “A,” and affirmed its “A” long-term issuer credit rating.

Both rating agencies said the outlook for the company is stable.

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According to AM Best, the ratings reflect MS Reinsurance’s balance sheet strength, adequate operational performance, neutral business profile and appropriate enterprise risk management practices.

The rating upgrades also reflect the additional explicit support that MS Reinsurance receives from Mitsui Sumitomo Insurance Co. Ltd. (MSI), in the form of a parental guarantee, which was recently enacted, AM Best said. (MS Reinsurance is a direct subsidiary of MSI, which itself is a core subsidiary of MS&AD).

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S&P noted that the guarantee only covers retrospective and prospective reinsurance liabilities.

“Following the appointment of new management from 2020, a series of remedial measures have been taken to improve underwriting performance and lower volatility of MS Reinsurance’s portfolio,” said AM Best.

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“Strategic initiatives include reducing catastrophe exposure and exiting underperforming accounts. The results of these measures, combined with hard market conditions, became visible in 2023, when the company achieved a combined ratio of 96%…,” the AM Best ratings report continued.

Prospectively, MS Reinsurance is expected to report profitable and less volatile underwriting results, AM Best added.

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“We are very pleased that AM Best and S&P have acknowledged MS Reinsurance’s strong financial and business profile with these financial strength rating upgrades,” commented MS Reinsurance CEO Robert Wiest in a statement.

“These decisions to lift our ratings supports our strategy focused on diversification and portfolio optimization and acknowledges our successful client-focused approach. The upgrades also reflect the significant remedial and transformation work that the company has undertaken in recent years,” he added.

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“With these improved ratings, MS Reinsurance is even better positioned as a reliable partner, providing the enduring support and security that our business partners are looking for,” Wiest said.

Source: AM Best, S&P Global Ratings and MS Reinsurance

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Topics
Reinsurance
Mississippi
AM Best

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