AM Best revises MS Reinsurance’s credit rating outlook to positive

May 28 - (The Insurer) AM Best has revised the outlook it holds for MS Amlin AG’s long-term issuer credit rating (ICR) to positive from stable, the rating agency said on Wednesday.

AM Best has also affirmed the A-plus financial strength rating and aa- long-term ICR it holds for the entity, which is known as MS Reinsurance.

The outlook on the FSR remains stable.

AM Best said the ratings reflect MS Reinsurance’s robust balance sheet strength, adequate operating performance, natural business profile and appropriate enterprise risk management.

The company benefits from explicit support from its ultimate parent, MS&AD Insurance Group Holdings, via a parental guarantee issued by its intermediate parent Mitsui Sumitomo Insurance Company, AM Best said.

The revision follows MS Reinsurance’s growing profile within the MS&AD group and improving financial performance. This was driven by strategic portfolio repositioning, reducing catastrophe exposure and exiting underperforming accounts, the rating agency said.

MS Reinsurance reported combined ratios of 95% in 2024 and 96% in 2023, or approximately 90% for both years under IFRS 17. AM Best expects MS Reinsurance to maintain profitable and less volatile underwriting results moving forward.

The reinsurer’s balance sheet strength assessment is backed by its risk-adjusted capitalisation at the strongest level, as measured by Best’s capital adequacy ratio (BCAR). Its BCAR had slipped in 2023, owing to strong premium growth, but recovered in 2024.