AM Best Affirms Credit Ratings of Samsung Fire & Marine Insurance Company of Europe Limited

LONDON–(GOOD WIRE)–
AM Best has confirmed the Financial Strength of A (Excellent) and the Long Term Credit Rating of “a+” (Good) of Samsung Fire & Marine Insurance Company of Europe Limited (SFME)United Kingdom). The loan format (parts) is fixed.

These ratings reflect the strength of SFME Bank, which AM Best considers to be very strong, as well as its strong operating performance, limited business history and effective management of business risks. The vote also adds to the direct and clear support from SFME’s parent company, Samsung Fire & Marine Insurance Co., Ltd. (SFMI).

SFME’s balance sheet strength is supported by risk-adjusted capitalization at a very strong level, measured by Best’s Capital Adequacy Ratio (BCAR). A strong balance sheet analysis benefits from a solid financial history and prudent savings strategies, as evidenced by a history of good savings development. Limitations also include the company’s limited cash flow and its heavy reliance on insurance to underwrite large risks. The high risk of liability from a large loss is partially mitigated by using a strong reinsurance group.

SFME has a strong performance history, which is reflected by a weighted five-year (2017-2021) return-on-equity ratio of 11.7%. Earnings are supported by strong, and somewhat volatile, records, shown by a combined ratio that has fluctuated between 45.8% and 77.4% over the past five years. SFME’s earnings contribute modestly to total earnings, reflecting the conservative nature of its portfolio.

An analysis of the limited business portfolio reveals a decline in SFME and a concentration in the property and goods business. Currently, the majority of the company’s income is generated by insuring Samsung’s group of accidents across the board United Kingdom, Europe, Central Asia, To kill and Africa. As a subsidiary of SFMI and part of the Samsung group, SFME benefits from the business history of the larger group. The company is expected to support its third-party business growth strategy in the short term.

This article relates to the Credit Ratings published on the AM Best website. For all information regarding the issuance and disclosure requirements, including details of the office responsible for issuing all ratings mentioned in this publication, please see AM Best’s. Recent Actions Web page. For more information on the application and limitations of the Credit Rating concept, please see Best’s Credit Ratings Guide. For more information on the appropriate use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best’s social media, please see Tips for Using the Best Ratings & Tests.

AM Best is a global credit agency, news publisher and data analytics provider specializing in the insurance industry. Headquarters at United Statesthe company does business in more than 100 countries with regional offices London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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Amazing Lopez
Associate Financial Analyst

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Valeria Ermakova
Assistant Manager, Analytics

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Christopher Sharkey
Manager, Public Relations

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Jeff Mango
General Manager,

Strategic Communications

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Source: AM Best