AM Best has affirmed Ansvar Insurance’s A- and a- credit ratings, with a stable outlook.

Ansvar’s balance sheet, operating performance, business profile and risk management are “very strong”, the ratings agency says. 

The company is owned by UK-based Ecclesiastical Insurance Office, a member of Benefact Group, and provides commercial insurance in the care, community, faith, education, heritage and property ownership sectors. 

“Ansvar has prudent capital management in place, with a track record of financial flexibility to support its regulatory solvency position and risk-adjusted capitalisation,” AM Best said. “Ansvar has a long-established presence in its target niche sectors where it leverages its strong expertise and brand recognition.” 

The company has faced heightened volatility in the past five years due to weather events and higher than expected physical and sexual abuse claims from legacy exposure.  

“While there remains a high level of uncertainty surrounding provisioning in this area, Ansvar’s net exposure is limited by ... cover provided by EIO,” AM Best said. 

Ansvar’s operating earnings were positive in 2022 and 2023, supported by its reinsurance program with Ecclesiastical Insurance Office, and its net investment yield passed 5% last year.  

AM Best notes Ansvar has received “explicit support from EIO”, including capital injections and reinsurance protection, which is expected to limit downside risk to Ansvar’s business fundamentals over the near term.  

“AM Best expects group support to remain available if Ansvar’s performance volatility persists.”