Hollard Insurance Company has retained its financial strength rating of A- and long-term issuer credit rating of a- with AM Best.

“The ratings reflect [Hollard’s] balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management,” the ratings agency says.

“In addition, AM Best expects [Hollard] to remain consistently profitable, based on a product portfolio that includes mostly pet health insurance, as well as domestic home and motor insurance in Australia.”

AM Best says Hollard is a niche player, with less than 2% share of the Australian market, but it enjoys good positions, mostly in short-tail insurance products.

The insurer has also established a diversified network of distribution partners, which allows it to expand into other products channels in the personal and commercial lines.