A.M. Best has given a financial strength rating of “A- (Excellent)” and the long-term issuer credit rating of “a-” to Sigurd Rück.
Sigurd Rück is a captive reinsurer of Saipem, an Italian firm that provides services to the oil and gas sector, including procurement, construction and installation of pipelines, as well as drilling.
According to A.M. Best, the ratings reflect Sigurd’s balance sheet strength, which is categorised as “very strong”.
A.M. Best also suggested that Sigurd Rück has a strong operating performance, neutral business profile and appropriate enterprise risk management, as well as a strong operating track record.
This was demonstrated by an average five-year return on equity of 20 percent from 2012 to 2016.
Profitability has been driven by the underwriting account, which, according to A.M. Best, has produced a five-year average combined ratio of 53 percent.
A.M. Best explained that negative rating actions for Sigurd could occur in the future because of decreasing premium rates and challenging market conditions affecting the Saipem group, Sigurd Rück’s parent company.
