Aegis A rating affirmed by AM Best
Energy mutual Associated Electric & Gas Insurance Services Limited has won approval from a rating agency for its balance sheet strength, its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The long-domiciled Bermuda mutual provides liability, property and directors & officers coverage, as well as related risk management services to virtually the entire energy infrastructure of North America.
That includes electric and natural gas utilities, exploration and production companies, water utilities, and transmission and distribution companies.
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) for Aegis. The outlook of the ratings is stable.
Aegis’ strategy emphasises risk diversification and a relatively conservative approach to capital preservation.
Diversification is achieved through the successful combination of its energy mutual operations in the United States with Lloyd’s Syndicate 1225 in uncorrelated lines of business.
Aegis continues to maintain the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, and has grown surplus consistently over the past 10 years.
Formed in Bermuda in 1975, Aegis’ historical focus on the US and Canadian utility industry has, in the past, resulted in unfavourable loss experience in certain lines of business, although the diversification benefit from its Lloyd’s syndicate has continued to stabilise underwriting performance.
AM Best said that management continues to focus on the company’s operating performance by improving its risk management strategies, including premium rate adjustments, continued refinement of its underwriting criteria, and the prudent use of available reinsurance protection and modest limits.
Aegis continues, the agency said, to demonstrate a high member retention ratio, an adaptive and highly responsive management team and the continued expansion of programmes within its corporate mission.