AM Best has kept Hollard Insurance Company’s financial strength rating at A- and long-term issuer credit rating at a-.

The ratings reflect the insurer’s balance sheet strength, adequate operating performance, neutral business profile and appropriate enterprise risk management.

“Over recent years, growth in underwriting operations at [Hollard] has driven increasing capital requirements,” AM Best says.

“However, a combination of capital injections and a hybrid debt issuance have [helped] to bolster capital adequacy and support planned business expansion

“Other balance sheet considerations include the company’s robust financial flexibility, adequate reserving approach, reliance on reinsurance and its exposure to illiquid investments arising from equity holdings in affiliated underwriting agencies.”

Hollard has grown to be among the 10 largest insurers by gross written premium since it launched in Australia 20 years ago.

It has a strong market position in niche segments including pet insurance.

The insurer aims to pursue high growth in the medium term through strategic partnerships with a network of distributors and underwriting agencies.

Hollard recently unveiled a new brand, Hollard Commercial Insurance, or HCi, to target the SME market.