A.M. Best Co. announced that it has affirmed the financial strength rating of “A+” (Excellent) of U.K. based HSB Engineering Insurance Limited (HSBEIL) with a stable outlook.
Best said it “regards HSBEIL as a core operating subsidiary of its parent, The Hartford Steam Boiler Inspection and Insurance Company (HSB), operating as the international arm of its parent in the UK, Europe, Australia and Canada (through its subsidiary, Boiler Inspection and Insurance Company of Canada). The rating also reflects HSBEIL’s current and prospective financial earnings, which are likely to maintain capitalisation at the superior level, and is supportive of the company’s business plans in 2005.”
Best also indicated that it “anticipates a continuation of HSBEIL’s strong financial performance in 2004 and 2005 with the company likely to produce a combined ratio below 90 percent in both years, subject to normal loss experience.
“HSBEIL has a specialist focus on the UK engineering sector where it benefits from a significant level of experience, supported by extensive engineering and equipment related databases which facilitates risk selection and claims management expense control.”
The rating agency forecast “growth in gross premium income of approximately 30 percent between 2003 and 2005 ($118.7 million in 2003), reflecting development of the company’s business in the UK, Europe and Australia.” However, Best noted that “despite this growth, business diversification is likely to remain limited with the company continuing its specialist focus on engineering equipment property damage and business interruption.”
Topics AM Best
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