Rating agency AM Best has downgraded the long-term issuer credit rating of London market re/insurer MS Amlin from “a+” to “a”.

AM Best has revealed it has downgraded its issuer credit rating (ICR) on MS Amlin AG, the Swiss-domiciled London market reinsurer. 


The credit rating agency said its long-term ICR on MS Amlin had slipped one notch to “a” from “a+”.

Both ratings still fall under the “excellent” and investment grade description, while Best also affirmed MS Amlin’s A-rated financial strength rating (FSR).

The outlook of the Long-Term ICR has been revised to stable from negative, whereas the outlook on the FSR is stable, the rating agency said.

“The downgrade of the Long-Term ICR reflects a deterioration of the company’s risk-adjusted capitalisation to the very strong level, as measured by Best’s Capital Adequacy Ratio, due to multiple years of operating losses, coupled with recent strong premium growth,” AM Best said.

While risk-adjusted capitalisation is expected to recover moderately over the medium term, AM Best revealed it expects it to stay at a lower level.

“The company’s underwriting profitability has been under pressure, demonstrated by a five-year (2017-2021) weighted average combined ratio of approximately 110% (including a combined ratio of 123% in 2021),” the rating agency said.

“However, underwriting results were marginally positive in 2022, and are expected to continue to improve as a result of corrective actions taken by the company’s new management team,” AM Berst added.

Overall creditworthiness reflects the reinsurer’s balance sheet strength, which AM Best assessed as “very strong”, as well as its “adequate” operating performance, “neutral business profile” and “appropriate enterprise risk management”, AM Best said.

“In addition, MS Amlin AG’s ratings benefit from rating enhancement, in the form of lift, due to the support provided by its ultimate parent, MS&AD Insurance Group Holdings, Inc. (MS&AD),” the rating agency added.