HONG KONG–(BUSINESS WIRE)–AM Best has confirmed the Financial Strength of A- (Excellent) and the Long Term Creditor of “a-” (Excellent) of INPEX Insurance, Ltd. (IIL) (Bermuda). Credit Ratings are good.
These ratings reflect the strength of IIL’s paper, which AM Best considers to be very strong, as well as its operational efficiency, neutral business history and sound business management.
The strength of the balance sheet is well supported by IIL’s risk-adjusted capitalisation, which is evaluated on a very strong basis, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s total assets were also strengthened to $ 262 million as of June 30, 2022, from $ 109 million as of December 31, 2021, following a major injection from the parent company, INPEX CORPORATION (INPEX) with the aim of expanding IIL’s writing capabilities.
IIL’s recorded performance over the most recent five-year period (FY2017 – FY2021) was consistently positive, contributing to a combined ratio of around 40% and a return of around 5%. In the year 2021, the company’s profit increased by USD 1.6 million to $ 5.7 million compared to the year 2020. , while its consolidated ratio continues to be positive in the short to medium term.
IIL is a wholly owned subsidiary of INPEX, Japan’s largest oil and gas exploration and production company. Being held by a single parent, IIL manages the operational risk, which is mainly related to property damage, third party liabilities and additional operating expenses for its parent companies, affiliates and associated companies. There are areas such as commercial offers, although this is removed by the diversity of its insurance sites. In addition, as INPEX continues to expand its international activities and IIL registers new ventures, AM Best expects that the diversification of IIL’s product portfolio will continue to improve.
The positive outlook reflects AM Best’s expectation that IIL will continue to deliver consistently good results, supported by continued premium growth with strong underwriting margins and a strong portfolio of its businesses.
Good results can be achieved if the IIL continues to maintain a high level of strength, while providing consistent and consistent results. Negative reactions can occur if there is a significant increase in losses due to a change in risk appetite. In addition, any deterioration in INPEX’s credit rating, including its profitability, liquidity and interest rate, could lower IIL’s rating.
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